To The Moon

Apple Inc. continued its streak of revenue declines into a fourth consecutive quarter, beating overall sales expectations but coming up short in China. Apple shares were off 3% in late trading following the earnings call.

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Oversold for a dip buy opportunity?

AAPL Q4 Earnings Summary:

*EARNINGS PER SHARE $1.46, EST. $1.39

*REVENUE $89.50B, EST. $89.31B

*IPHONE REVENUE $43.81B, EST. $43.73B

*GREATER CHINA REV. $15.08B, EST. $17.01B

For the September quarter, Apple (AAPL) reported iPhone revenue of $43.8 billion, up from $42.6 billion a year before, matching the FactSet consensus. The September quarter included just over a week's worth of sales of the new iPhone 15 lineup, which came out amid investor concerns about spending trends and China competition.

Overall Greater China revenue came in at $15.1 billion relative to $15.5 billion a year before, whereas analysts were projecting $16.8 billion.

The company's business in China, its third largest market, shrank 2.5% to $15.1 billion, missing analyst estimates. In the country, Apple is facing a broad economic slowdown, stronger domestic competition and heightened government scrutiny.

"China has always been the most competitive market in the world and we think it will continue to be like that," Luca Maestri, Apple's chief financial officer, said in an interview.

Maestri added that the top four bestselling phones in urban China were iPhones and the company believes it actually gained market share in mainland China.

A big green day!

China recently ordered central government employees to not use iPhones or other foreign-branded phones for work, The Wall Street Journal reported in September.

The challenges in China have spooked Apple investors, sending shares down more than 10% since the company's all- time high earlier in the summer. In late June, Apple became the world's first corporation to close with a market value
above $3 trillion.

In the midst of these hurdles, Apple Chief Executive Tim Cook made a surprise, whirlwind trip to China in October, visiting a key supplier and meeting with senior Chinese officials.

Room for greed! 😉

Apple has been pushing consumers toward its pricier iPhone Pro models over the past few years to keep sales growth up even as smartphone shipments have slowed. But that growth strategy may be reaching its limits, with Apple having likely reached almost every potential Pro customer by now, analysts said.

In the quarter ended in September, U.S. smartphone shipments shrank 19% from the prior year, including an 11% decline for the iPhone, though that may be due in part to the iPhone 15 launching later in the month than the previous year's model, according to Counterpoint Research.

The company saw services revenue grow to $22.3 billion from $19.2 billion and exceed the FactSet consensus, which was for $21.4 billion.

"From a category standpoint, literally, we set records in each one of the big categories," Maestri said of the services business. "We had all-time records for App Store, for advertising, for cloud, video, Apple Care, payments and a September-quarter record for music."

The stock is up 36% so far this year, while the Dow Jones Industrial Average DJIA has gained about 1%.

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