Apple Q4 - record quarter

Apple's latest quarterly numbers were solid. Total revenue grew 4% to $124.3 billion, beating estimates, notwithstanding iPhone sales being 1% softer at $69.1 billion.

China was a weak spot, with sales down 11% to $18.5 billion, short of the $20.9 billion analysts expected. However, the company's Services segment, which includes the App Store and subscriptions, grew 14% to $26.3 billion.

Profit for the quarter rose over 7% to $36.3 billion. A tidy sum, indeed.

AI remains a work in progress for Apple. They've introduced some AI-powered features, adoption has been slower than expected, and some tools, like notification summaries, have had issues.

Unlike Microsoft and Google, Apple hasn't gone all-in on costly AI infrastructure, instead focusing on integrating third-party AI services into its devices. This cautious approach has its merits.

Apple faces competition in China from Huawei and Xiaomi, and potential trade risks with the new Trump administration. However, the iPhone remains the top-selling smartphone, and Apple's ecosystem continues to drive steady growth.

While short-term headwinds persist, Apple's strong cash flow, resilient services business, and long-term AI potential make it a solid hold.