Apple Ends Streak of Declines

 Apple posted a sales increase for the all-important holiday quarter, ending a recent slump that had been one of the company’s worst earnings streaks in more than two decades.

On Thursday, Apple reported revenue of about $120 billion, up 2.1% from the October-to-December period a year earlier, and net income of $34 billion, up 13%. Both of those figures exceeded analyst expectations, according to FactSet.

Apple’s crucial iPhone business grew nearly 6% from the same year-ago quarter, with $69.7 billion in sales versus the $67.6 billion analysts had projected, according to The Wall Street Journal.

Apple said it has surpassed 2.2 billion active devices for its products. “This is obviously the engine for the company and for the future,” Chief Financial Officer Luca Maestri said in an interview.

Apple’s results underscored the strong performance this earnings season of the largest technology companies, especially among those that are infusing their products and services with artificial intelligence. Microsoft reported its strongest profit growth in more than two years as it continues to refresh many of its business software offerings with the same technology behind ChatGPT.

Shares in Facebook-parent Meta Platforms rose by more than 14% after its results, as it detailed the ways in which AI has helped wring profits from Instagram’s Reels and other platforms. Google parent Alphabet recorded advertising sales that missed Wall Street expectations but marked a fourth straight quarter of accelerating sales growth.

“Everyone is getting valuation bumps on AI,” said Trip Miller, managing partner at Gullane Capital Partners, an Apple shareholder. “Apple is telegraphing a wait-and-see approach. You never want to say Apple is behind, but from a signaling standpoint it seems like other large tech companies might have a bit of a lead.”

On Apple’s earnings call, Chief Executive Tim Cook said the company is investing in artificial intelligence and that it plans to share details of its work later this year.

The iPhone-maker has faced a confounding array of challenges in the last year, including regulatory scrutiny around the world on its App Store policies, falling sales in China and restive investors wary about the company’s growth prospects. Several analysts have downgraded the stock this year.

The company saw four consecutive quarters of year-over-year declines in revenue. The last time that happened was in 2001, shortly before Apple launched the iPod after co-founder Steve Jobs returned as chief executive. For its fiscal 2023 that ended in September, sales declined 2.8%.