Apple's AI-Powered iPhone Shakes Up Market Amid Revenue Concerns

Apple's AI-driven iPhone boosted quarterly sales beyond Wall Street predictions, despite a conservative revenue forecast that dampened investor enthusiasm. The unexpected dip in China's fourth-quarter sales raised alarms. Apple's services sector showed promise, though hardware revenue concerns remain.

Apple's latest AI-infused iPhone has exceeded Wall Street's expectations for quarterly sales, though some investor enthusiasm waned following a conservative revenue forecast for the upcoming holiday season.

A decline in fourth-quarter sales in China has particularly worried analysts, who observed a 1.4% dip in Apple shares after hours.

Despite these setbacks, Apple's service sector is showing potential for growth, although concerns about hardware sales persist amid new iPhone software features and AI strategy development.

(With inputs from agencies.)