Apple's Holiday Quarter Broke Years-Long Streak Of Revenue Declines But China Slowdown Overshadowed Even Its Record Service Revenue
Portfolio Pulse from Upwallstreet
Apple Inc (AAPL) reported a 2% YoY revenue growth to $119.6 billion in its fourth quarter, surpassing Wall Street expectations and marking its first sales growth in a year, driven by record service revenue. Despite this, weak demand in China, where revenue slumped 13% YoY, overshadowed the achievement. Meanwhile, Microsoft Corporation (MSFT) surpassed Apple as the world's most valuable company, reaching a $3 trillion market cap, fueled by its strongest profit growth in over two years and AI integration across its business. Apple's services segment, including the App Store and Apple TV, grew 11% YoY, highlighting a shift in the company's revenue sources. Apple also introduced the Vision Pro headset, a significant product launch, and received 13 Academy Award nominations for its AppleTV+ content.
February 08, 2024 | 2:59 pm
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POSITIVE IMPACT
Microsoft Corporation surpassed Apple as the world's most valuable company, reaching a $3 trillion market cap, driven by its strongest profit growth in over two years and the integration of AI across its business.
Microsoft's achievement of becoming the world's most valuable company, coupled with its significant profit growth and strategic AI integration, suggests a positive short-term impact on its stock price as investor confidence likely increases.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
NEUTRAL IMPACT
Apple's Q4 earnings surpassed expectations with a 2% revenue growth, driven by record service revenue. However, weak demand in China and a 13% revenue slump there pose challenges. The introduction of the Vision Pro headset and success in AppleTV+ content highlight strategic shifts.
While Apple's revenue growth and strategic focus on services and new product launches like the Vision Pro headset indicate positive momentum, the significant revenue slump in China presents a considerable challenge that could offset these gains in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100