{"id":439444,"date":"2026-01-30T19:49:20","date_gmt":"2026-01-30T19:49:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/439444\/"},"modified":"2026-01-30T19:49:20","modified_gmt":"2026-01-30T19:49:20","slug":"apple-tops-q1-earnings-estimates-on-record-breaking-iphone-sales-stock-falls-after-cooks-memory-warning","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/439444\/","title":{"rendered":"Apple tops Q1 earnings estimates on record-breaking iPhone sales; stock falls after Cook’s memory warning"},"content":{"rendered":"\n

Apple (AAPL<\/a>) reported its first quarter earnings on Thursday, beating Wall Street’s expectations on the top and bottom lines, on strong iPhone sales.<\/p>\n

Apple’s iPhone revenue topped out at an all-time record of $85.3 billion in the quarter, well ahead of the $78.3 billion analysts were anticipating. The company recorded iPhone sales of $69.1 billion in the same quarter last year.<\/p>\n

But during Apple’s earnings call, CEO Tim Cook said that the global memory crunch is going to hit the company’s margins going forward. Apple projects margins of between 48% and 49% in Q2. Gross margins in Q1 were 48%.<\/p>\n

Apple stock edged lower early Friday, retracing an initial slight gain soon after the earnings release.<\/p>\n

The AI data center buildout has put a massive strain on the market for memory chips, which could impact the price of smartphones, laptops, and any other consumer or enterprise devices, unless manufacturers decided to swallow the cost.<\/p>\n

Overall, Apple reported earnings per share (EPS) of $2.84 on revenue of $143.8 billion. The Street was anticipating EPS of $2.68 on revenue of $138.4 billion, according to Bloomberg analyst consensus estimates.<\/p>\n

Apple’s Services business, its second-largest behind the iPhone, brought in $30 billion, in line with expectations. Analysts were calling for $30 billion. Mac and iPad revenue were $8.4 billion and $8.6 billion, respectively, while Wearables revenue hit $11.5 billion.<\/p>\n

Importantly, China sales improved to $25.5 billion during the quarter, climbing nearly 38% year over year. That marks a major turnaround for the region after sales declined in three out of the last four quarters.<\/p>\n

Apple’s earnings come after news broke that the company is acquiring startup Q.AI. The Information reports <\/a>that the acquisition will cost Apple $2 billion, and that the company’s technology can read facial skin micro-movements, which could be used to help Apple support “non-verbal discussions” with an AI assistant.<\/p>\n

Earlier this month, Apple and Google (GOOG<\/a>, GOOGL<\/a>) issued a joint statement saying that the iPhone maker will use Google\u2019s Gemini models<\/a> and cloud technology to power its AI efforts, including a more personalized Siri due out later this year.<\/p>\n

\"A A general view of the Apple retail store on Nanjing East Road in Shanghai, China, on January 29, 2026. (Photo by Ying Tang\/NurPhoto via Getty Images) \u00b7 NurPhoto via Getty Images <\/p>\n

Apple’s AI is lagging behind smartphone rivals Samsung, which also uses Google’s models. The company has been promising a fully revamped Siri since 2024, but has had to delay it until later this year due to quality issues.<\/p>\n

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Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley<\/a>.<\/p>\n

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