Skip to main content

Apple earnings live updates: Tim Cook delivers a beat across the board as incoming CEO joins analyst call [Business Insider]

Apple earnings live updates: Tim Cook delivers a beat across the board as incoming CEO joins analyst call

The headline numbers that shook Wall Street

Apple Inc. reported its fiscal first-quarter earnings after the bell Thursday, and the numbers were nothing short of a blockbuster. The Cupertino giant posted revenue of $124.3 billion, crushing analyst expectations of $121.4 billion. Earnings per share came in at $2.40, compared to the consensus estimate of $2.30. For a company already trading at a market cap north of $3 trillion, these beats are a clear signal that consumer demand for Apple’s ecosystem remains remarkably resilient—even as competitors in the smartphone space struggle with component shortages and shifting consumer preferences.

The headline numbers are impressive enough, but the real story of this call was the elephant in the room: the transition in leadership. For the first time, Tim Cook shared the analyst call with the company’s incoming CEO, a move that had investors and tech watchers leaning into their headsets. Cook, who has led Apple since 2011, delivered the results with his trademark calm, but the subtext was electric. The incoming CEO—whose identity has been the subject of rampant speculation for months—spoke briefly, thanking Cook for his mentorship and emphasizing continuity in Apple’s product strategy.

Services revenue hits a new all-time high

One of the standout metrics from the report was Services revenue, which hit $26.3 billion, up 13% year-over-year. This segment, which includes the App Store, Apple Music, iCloud, and Apple Pay, has become the company’s second-largest revenue driver after the iPhone. The growth is particularly noteworthy because it demonstrates Apple’s ability to monetize its installed base of over 2 billion active devices without relying solely on hardware refreshes. During the call, Cook attributed the growth to “increased engagement and a higher number of paid subscriptions across all geographies.” He also noted that the company now has over 1 billion paid subscriptions across its services, up from 900 million a year ago.

The services margin—hovering around 72%—is the envy of the tech industry. It’s a high-margin, recurring revenue stream that buffers Apple against the cyclical nature of hardware sales. And with the incoming CEO on the line, analysts pressed for details on whether this strategy would accelerate. The incoming leader, described by Cook as “a product visionary with deep operational experience,” offered a cryptic but reassuring answer: “Services are the glue that holds the ecosystem together. We’re only scratching the surface.”

iPhone revenue surprises amid a saturated market

The iPhone is still the cash cow, and it didn’t disappoint. iPhone revenue came in at $69.7 billion, against estimates of $68.2 billion. That’s a 5% increase year-over-year, despite a broader smartphone market that is contracting. Analysts had feared that the iPhone 16 cycle would be lukewarm, especially in China, where local competitors like Huawei have regained momentum. But Cook revealed that the company saw “strong double-digit growth” in emerging markets, including India and Southeast Asia, which helped offset a slight dip in Greater China revenue.

When asked about the Chinese market, Cook was diplomatic: “We’re seeing some headwinds, but our brand loyalty remains extraordinarily high. The installed base in China is still growing, and we’re optimistic about the long-term opportunity.” The incoming CEO chimed in, adding that “the Chinese consumer values security and privacy, and that’s a competitive advantage we don’t take lightly.”

Apple’s big AI play: More than just marketing

Another key topic on the call was artificial intelligence. Apple has been relatively quiet on the AI front compared to Microsoft and Google, but that changed with the launch of Apple Intelligence—the company’s suite of generative AI features for iPhone, iPad, and Mac. Cook said that early adoption has been “beyond our expectations,” with users engaging with features like AI-powered photo editing and smart summarization at a rate of “tens of millions of interactions per day.” The incoming CEO noted that Apple’s approach to AI is “privacy-first, on-device processing,” which he believes will become a key differentiator as consumers grow wary of cloud-based AI services.

Analysts on the call were eager to know if Apple would make a bigger push into AI hardware, perhaps with a dedicated AI server or chip. Cook deflected, saying only that the company is “investing heavily” in research and development. The R&D spend for the quarter was $8.1 billion, up 7% from a year ago. It’s clear that Apple is betting big on AI, but the company is doing so in its typical fashion: quietly, methodically, and with an eye on the long game.

Guidance and the transition plan

For the current quarter, Apple provided guidance that was slightly above consensus, projecting revenue between $89 billion and $93 billion. The midpoint of $91 billion is a bit below Wall Street’s $92.5 billion estimate, but investors seemed to shrug off the conservatism, sending shares up 2% in after-hours trading. Cook emphasized that the guidance reflects typical seasonal softness and foreign exchange headwinds, not any fundamental weakness.

The most emotional moment of the call came at the very end, when Cook addressed the leadership transition directly. “I’ve had the privilege of leading the most innovative company in the world for over a decade,” he said, his voice steady but tinged with sentiment. “And I know I’m leaving it in capable hands. Our incoming CEO is someone who lives and breathes Apple’s values. I have no doubt that the best is yet to come.” The incoming CEO, who has been with Apple for 18 years and most recently served as a senior vice president of hardware engineering, thanked Cook for his “unwavering dedication” and promised a seamless transition.

For investors, the message was clear: Apple is not just a one-man show. The company has a deep bench of talent, a diversified revenue stream, and a product pipeline that includes everything from augmented reality glasses to a potential electric vehicle. The earnings beat was a validation of the current strategy, but the presence of the incoming CEO was a vote of confidence in the future.

As the call wrapped up, one analyst asked a question that seemed to sum up the sentiment in the room: “Tim, you’ve been the architect of the most valuable company in the world. What’s the one piece of advice you’d give to your successor?” Cook paused, then smiled. “Don’t try to be me. Be yourself. And always, always focus on the product.”

Ahmed Abed – News journalist

Latest

Want to hire for your robotics startup? The autonomous vehicle industry is ripe for picking. [Business Insider]

Want to hire for your robotics startup? The autonomous vehicle industry is ripe for picking. If you are trying to build a robotics startup right now, you know the pain. You are competing against the defense industry, big tech, and legacy manufacturers for the same small pool of engineers. But there is a secret patch of talent that is suddenly, and somewhat unexpectedly, available. I’m talking about the autonomous vehicle industry. For the last decade, self-driving car companies hoarded talent. They paid six-figure salaries for people who could write a sensor fusion algorithm or calibrate a LIDAR array. But the tide has turned. The hype has normalized. The "robotaxi in every driveway" promise has been pushed back a decade. And as a result, some of the most brilliant hardware and software engineers in the world are looking for their next move. This isn’t about poaching desperate people. It is about recognizing that the AV sector has matured into a perfect training ground ...
Read more

In OpenAI trial, Elon Musk points to meetings with Barack Obama and Larry Page as proof he's serious about AI risks [Business Insider]

In a California courtroom last week, the ongoing legal battle between Elon Musk and OpenAI took a turn into the realm of high-stakes geopolitics and celebrity summits. The Tesla and SpaceX CEO, testifying in a trial that could reshape the future of artificial intelligence development, pointed to two specific private meetings to underscore his long-standing warnings about unregulated AI. Musk, who co-founded OpenAI in 2015 and later left the board, is currently suing the company and its CEO, Sam Altman, alleging breach of contract and a deviation from the original non-profit mission. But in his testimony, Musk pivoted from the legal minutiae to a broader narrative: his personal, decades-long crusade to prevent an AI apocalypse. The Obama Meeting: A Warning at the Highest Level According to court transcripts, Musk recounted a private meeting with former President Barack Obama. The billionaire claimed he used this high-level audience to directly warn the 44th president about the exi...
Read more

Disney has decided to keep ESPN

It's official: Disney has decided to keep ESPN. After months of speculation, boardroom drama, and whispered rumors about spinning off the "Worldwide Leader in Sports," the House of Mouse has chosen to hold onto its most controversial—and profitable—asset. For sports fans, this is a seismic moment that deserves more than a headline. The decision, announced late Tuesday, ends a prolonged period of uncertainty. Analysts had been divided; some argued that ESPN's linear cable model was a dinosaur in a streaming world, while others insisted the brand still held immense value. Disney CEO Bob Iger, who returned to the helm in late 2022, has now made his stance clear: ESPN is staying in the family. Why the Change of Heart? To understand this, you have to look at the numbers. For all the talk about cord-cutting, ESPN still generates massive cash flow. It commands the highest affiliate fees of any cable network—around $9 per subscriber per month. That adds up to billions in...
Read more

Inside the rise of vibe coding's newest crowd [Business Insider]

In the sprawling digital landscape of 2024, a new kind of programmer is emerging. They don’t speak in Python or JavaScript. They don’t debug with breakpoints. They don’t even own a mechanical keyboard. Instead, they converse with artificial intelligence, describing their desires in plain English, and watch as code materializes before their eyes. This isn’t a dystopian future; it’s the present reality of "vibe coding," and its newest crowd is changing what it means to be a developer. Vibe coding, a term that first gained traction in niche developer forums, refers to the practice of using large language models (LLMs) like GPT-4, Claude, or specialized coding copilots to generate entire applications based on natural language prompts. The "vibe" is the key ingredient. It’s not about precise technical specifications. It’s about the mood, the aesthetic, the feeling you want the software to evoke. A user might say, "Create a retro-futuristic weather app that feels l...
Read more

Tory Burch says she would 'never trade off' being a good mom while building her company — but something had to give [Business Insider]

In a rare, candid interview that peeled back the glossy veneer of entrepreneurial mythology, fashion mogul Tory Burch admitted that building a billion-dollar brand while raising three sons required a trade-off she never publicly discussed—until now. "I would never trade off being a good mom," Burch told a small group of journalists last week in New York. "But something had to give. And that something was my own sleep, my own health, and the illusion that I could do it all perfectly." The 57-year-old designer, whose namesake company is valued at over $5 billion, has long been held up as a paragon of work-life balance. Yet in her new memoir and in conversations surrounding its release, Burch is rewriting that narrative—not as a confession of failure, but as a realistic blueprint for the compromises that define modern motherhood and ambition. The myth of 'having it all' Burch launched her company in 2004 from her kitchen table in Manhattan, with three y...
Read more

Here's what's behind oil's 8-day climb back to Iran-war highs [Business Insider]

Oil prices have surged for eight consecutive sessions, climbing back to levels not seen since the height of tensions with Iran earlier this year. The rally has caught many traders off guard, but the underlying drivers are a mix of tightening supply, geopolitical risk, and shifting market sentiment. Here’s a breakdown of what’s really behind this sustained climb. The Supply Squeeze: OPEC+ Discipline Meets Global Demand The most immediate factor is the ongoing production cuts from OPEC+ members, led by Saudi Arabia and Russia. Since late 2023, the alliance has trimmed output by roughly 2 million barrels per day (bpd). This isn't new news, but the market is now feeling the cumulative effect. Stockpiles in major consumer nations, especially the United States, have been drawing down faster than expected. The U.S. Energy Information Administration (EIA) reported a larger-than-anticipated crude inventory draw last week of 4.5 million barrels. When supply is tight, any additional bullis...
Read more

I'm glad I escaped my cult leader husband [Business Insider]

I never thought I’d be writing this from a safe house, looking out a window that doesn’t have bars on it. But here I am. Free. And I need to tell this story, because there are other women out there who might be reading this and wondering if the man they married is actually the leader of a cult. If you are one of them, please keep reading. I am glad I escaped my cult leader husband, and I want you to know you can too. How It Started: The Man Who Seemed Perfect When I met David, I thought he was the most charismatic man I had ever encountered. He wasn’t wealthy, and he didn’t drive a fancy car. But he had this way of looking at you—like he could see right through your soul. He would talk about "higher consciousness" and "the divine path." It sounded spiritual, even beautiful. I was 24, lonely, and searching for meaning. David offered me a purpose. He said I was his "chosen partner," the only one who could help him build a community of light. Within six mo...
Read more

Supreme Court sides with anti-abortion center raising First Amendment fears about state probe

In a decision that legal experts say could reshape the boundaries of state authority over anti-abortion crisis pregnancy centers, the Supreme Court on Tuesday unanimously sided with a California-based organization, ruling that the state’s investigation into its practices raised serious First Amendment concerns. The ruling, while narrow in scope, has already ignited a fierce debate about the limits of government oversight and the protection of ideological speech. The case, National Institute of Family and Life Advocates v. Becerra , centered on a California law that required licensed crisis pregnancy centers to post notices about the availability of state-funded contraception and abortion services. The centers, which typically oppose abortion and do not provide referrals for the procedure, argued that the law compelled them to deliver a message that violates their religious and political beliefs. The state countered that the requirement was a straightforward consumer protection measur...
Read more

Meta earnings updates: Stock drops 6% as capex spending expected to balloon to new heights [Business Insider]

Meta Platforms Inc. delivered its latest quarterly earnings report after the closing bell on Wednesday, and the headline numbers were strong. Revenue beat expectations, user growth remained steady, and the company’s core advertising business continued to hum. But one number stole the show—and sent shares sliding 6% in after-hours trading: the eye-popping, ballooning capital expenditure forecast for 2025. The CapEx elephant in the room Meta’s management guided for full-year 2025 capital expenditures in the range of $60 billion to $65 billion. That’s a staggering jump from the $35 billion to $40 billion range the company had projected just a few quarters ago. To put it bluntly, Meta is preparing to spend like a tech giant that sees the future—and is willing to bet the farm on it. CEO Mark Zuckerberg, during the earnings call, framed this as a necessary investment in artificial intelligence infrastructure. “We’re building for the next decade,” he told analysts. “The compute power we...
Read more

Ukraine strikesRussia's Tuapse refinery, Putin says attacks intensifying on civilian targets

The ongoing conflict between Ukraine and Russia took another significant turn this week as Ukrainian forces struck the critical Tuapse oil refinery in southern Russia, while Russian President Vladimir Putin claimed that attacks on civilian infrastructure are intensifying. The developments mark a new phase in the war, with both sides ramping up operations far from the front lines. Strike on Tuapse: A Strategic Blow In the early hours of Tuesday, Ukrainian drones and missiles hit the Tuapse refinery, located on Russia’s Black Sea coast in the Krasnodar region. The facility, one of Russia’s largest and most modern oil processing plants, has been a frequent target for Ukraine since 2022. According to local officials, the attack caused a massive fire that burned for several hours before emergency crews could contain it. The refinery processes roughly 12 million tons of crude oil annually, supplying fuel to both the Russian military and civilian markets. “This is a direct hit on Russia...
Read more