*By Chloe Aiello* Apple spiked in extended trading on Tuesday after reporting earnings and revenue that pleased Wall Street. Apple ($AAPL) reported earnings per share of $4.18 on revenue of $84.31 billion, just exceeding the expectations of analysts surveyed by Thomson Reuters for earnings of $4.17 per share on $83.97 billion in revenue. Earnings increased year-over-year, thanks partially to [Apple's generous share buy-back program](https://www.wsj.com/articles/the-investment-that-cost-apple-9-billion-in-2018-11545925184?mod=hp_lead_pos2), but revenue slid about 4.5 percent from the prior year. Apple’s reported revenue beat guidance the tech behemoth issued in early January, but easily missed the $89 billion to $93 billion revenue range Apple guided toward in November, when it last reported earnings. “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” Apple CEO Tim Cook [said in a statement](https://www.apple.com/newsroom/2019/01/apple-reports-first-quarter-results/). Apple's Chief Financial Officer [Luca Maestri last quarter announced Apple would no longer break out iPhone unit sales](https://cheddar.com/videos/apple-trying-hide-something-reporting-shakeup). But in its earnings statement, Apple acknowledged that iPhone revenue declined 15 percent from the prior year, as revenue from other products and services grew 19 percent. But Maestri added on a call with analysts Tuesday that the global active install base of iPhones is growing and "reached an all-time high at the end of December." He said it surpassed 900 million devices, up year-over-year in all geographic segments, even China, and grew almost 75 million in the last 12 months. Services alone generated an all-time high revenue of $10.9 billion, up 19 percent year-over-year. Apple has been positioning itself to grow its services offerings, like iCloud and App Store, as sales have faltered for the iPhone, its core product. Apple also offered guidance for the ongoing quarter. The company said it expects revenue between $55 billion and $59 billion. Heading into its last earnings report, Apple was on top of the world. Despite stagnating sales of its core product, the iPhone, the tech behemoth had breached $1 trillion in market capitalization ー the first publicly traded U.S. company to do so ー and it had just unveiled several new iPhone models that promised to propel its average selling price further skyward. But what followed was a turbulent quarter for the markets and for Apple. Cook’s preemptive outlook downgrade in a note to investors on Jan. 2 sent shares tumbling. Cook blamed weakness in the Chinese market for most of the revenue shortfall to its guidance, and for all of the year-over-year worldwide revenue decline. Per Cook's warning, Apple's earnings report showed a notable slowdown in China. Sales in the last three months of 2018 declined about 27 percent year-over-year from $17.96 billion to $13.17 billion in Apple's Greater China segment, but sales in the Japanese and European markets also dipped. Apple shares were up about 3.6 percent in after hours trading, but down about 2 percent year-to-date. Since it hit $1 trillion, the tech behemoth’s market cap has slid about 27 percent to $734 billion.

Share:
More In Business
New York Times, after Trump post, says it won’t be deterred from writing about his health
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI names Slack CEO Dresser as first chief of revenue
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
Trump approves sale of more advanced Nvidia computer chips used in AI to China
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
Trump says Netflix deal to buy Warner Bros. ‘could be a problem’ because of size of market share
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
What to know about changes to Disney parks’ disability policies
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
Load More