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Apple Inc (Nasdaq: AAPL) is trading up in extended hours on Thursday after reporting solid results for its first financial quarter.

iPhone and services steal the spotlight

The multinational attributed strength in its recently concluded quarter partially to its flagship handset.

iPhone generated $69.7 billion in revenue in Q1 (up 6.0% year-on-year) versus analysts at $67.96 billion. Tim Cook – the chief executive of Apple Inc said in a press release today:

 

We are pleased to announce that our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments

On the downside, though “services” brought in $23.12 billion for the Nasdaq-listed firm in the first quarter – weaker than $23.35 billion expected. $AAPL is now up 5.0% versus its year-to-date low.

Apple Q1 earnings snapshot

• Earned $33.92 billion versus the year-ago $30 billion
• Per-share earnings also climbed from $1.88 to $2.18
• Revenue jumped 2.0% year-over-year to $119.58 billion
• Consensus was $2.10 a share on $117.91 billion in revenue

Apple Inc saw it gross margin sit at 45.9% in the first quarter – ahead of 45.3% expected. Apple’s chief of finance Luca Maestri said today:

 

We generated nearly $40 billion of operating cash flow and returned almost $27 billion [in Q1]. We’re confident in our future, and continue to make significant investments to support long-term growth plans.

What else was noteworthy in the earnings report?

• Mac revenue printed at $7.78 billion versus $7.8 billion expected
• iPad revenue came in at $7.02 billion versus $7.31 billion expected
• Other products brought in $11.95 billion versus $11.56 billion

Apple will likely offer guidance for its current quarter earnings on the conference call that you can tune into on this link. According to the chief executive:

 

As customers begin to experience the incredible Apple Vision Pro tomorrow, we’re committed as ever to pursuit of groundbreaking innovation.

When Apple Vision Pro launches tomorrow, users will be able to explore more than 1 million apps, including 600 apps made specifically for Vision Pro! The creativity of developers is amazing, and this is just the beginning. Endless possibilities await! https://t.co/z5nIByMEd6

— Tim Cook (@tim_cook) February 1, 2024

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