02 August 2024
If you are covering Apple’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“All in all, Apple’s results were fairly clean, giving it a quieter quarter in the lead up to new developments later this year. Revenues were up 5% slightly higher than market expectations, with profits rising 10%. The launch of the new iPad Pro has helped deliver these numbers, with the services division also continuing to have significant influence on the results. Unsurprisingly, China remains a headwind for Apple, while iPhone sales are down as we head into a new product cycle.
“The guide for growth is similar to this quarter, but it is this new product cycle that Apple, and investors, are waiting for. We await the launch of Apple Intelligence, its artificial intelligence offering, which it says will be personalised for the user, something that is a slight differentiator to other consumer tech companies. Apple Intelligence is going to be a big feature of Apple’s products going forward and as a result the iPhone 16 is hotly anticipated. We are also expecting a new, smarter version of Siri to come later this year too, both of which may help propel Apple back to status as the leading consumer tech manufacturer.
“The market reaction to these results was rather muted, no bad thing given how beat up some other large tech companies were in after-hours trading. Ultimately, investors are sitting patiently waiting for a catalyst to help Apple on its next leg of growth. It remains a high-quality company, but it is not cheap by any means, so a lot appears to be resting on September and the launch of the new iPhone.”
