Investing.com - Shares in Apple (NASDAQ:AAPL) were lower in premarket U.S. trading on Friday after the tech giant reported iPhone sales that fell just shy of estimates due in part to weakness in its Chinese market.
The company announced earnings per share (EPS) of $2.18 on total revenue of $119.58 billion. Analysts polled by Investing.com had anticipated EPS of $2.10 on revenue of $118.06B.
But the better-than-expected revenue came despite sales in greater China falling 13% to $20.82B, as iPhone demand was dented by a tough competitive backdrop in the country.
"Apple’s worrying China sales figures indicate demand for its high-end iPhones is slowing more than expected in the face of rising competition from local companies, including Huawei," Jesse Cohen, senior analyst at Investing.com, said Thursday.
iPhone revenue, which makes up about half of total revenue, rose to $69.70B from $65.78B a year earlier, but missed estimates of $67.82B.
Revenue from Apple’s service business, which includes Apple Music, Apple TV+ and iCloud, grew to $23.12B from $20.77B a year earlier, below estimates of $23.35B.
Wearables and accessories racked up $11.95B in revenue, down from $13.48B, but ahead of estimates of $11.56B.