Apple narrowly beats estimates, with boost from iPhone sales

SAN FRANCISCO — Apple reported revenues last week that narrowly surpassed analyst expectations, sending shares lower in after-hours trading even as it enjoyed a boost from iPhone sales.

The company saw quarterly revenue of $94.9 billion in the three months ending September 28, up from the same period last year, in a closely watched report as investors seek to gauge demand for its latest iPhones.

Revenue in greater China, however, showed weakness — falling slightly from the same period a year earlier to $15 billion.

Apple's iPhone sales came in at $46.2 billion, compared with expectations of $45.2 billion for the company's key product.

"Today Apple is reporting a new September quarter revenue record," said CEO Tim Cook in a statement, adding that the quarter included the company's launch of a new iPhone 16 lineup.

Investors are eyeing demand for new iPhones with artificial intelligence features, and Apple launched its iPhone 16 in September.

The company has since rolled out its first set of AI features dubbed "Apple Intelligence," across its premium iPhone, iPad and Mac devices — marking its major push into generative AI.

Besides Apple, other tech giants like Google, Microsoft and Amazon are convinced that generative AI's powers are the next chapter of computing — boosting spending so as not to be left behind.