Apple, Amazon, and Facebook-Parent Meta Earnings Are Out

Apple shares are down in late trading Thursday after the company reported December-quarter results that topped Wall Street estimates, with strength in iPhones, but lower than expected growth in services.

Apple also reported a worrisome decline in its China business, where, the company is seeing new competition in the smartphone market from Samsung and others. Greater China sales were $20.8 billion, down 13% from a year ago. CEO Tim Cook said on the company's earnings conference call that iPhone sales in China were down in the mid-single digits, which implies higher declines for other hardware products.

The company noted that it has now has an installed base of active devices of more than 2.2 billion

For the quarter, Apple posted revenue of $119.6 billion, up 2% from a year ago, snapping a four-quarter string of revenue declines. Profit was $2.18 a share, ahead of the Wall Street consensus forecast of $2.11 a share. Gross margin was 45.9%, up from 43% in the year earlier quarter, and up 70 basis points sequentially.

The company noted that the latest quarter was 13 weeks, while the year ago period was 14 weeks.

iPhone revenue was $69.7 billion, up 6%, and ahead of the Wall Street consensus forecast of $65.8 billion. Services revenue was $23.1 billion, up 11%, but slightly shy of the consensus view at $23.3 billion.

Mac sales were $7.8 billion, about flat with a year ago, and a tad below consensus of $7.9 billion. iPad sales were $7 billion, down 25%, and below the Street's $7.4 billion forecast. Wearables, home and accessories revenue was $12 billion, above consensus at $11.3 billion, but down 11% from a year ago.

Overall product sales were $96.5 billion, about flat with a year ago.

Americas sales were $50.4 billion, up 2%. In Europe, sales were $30.4 billion, up 10%. Japan sales were $7.8 billion, up 15%. Sales in the rest of the Asia Pacific region were $10.2 billion, up 7%.

Apple shares were 1.7% lower in after-hours trading following the report.