Fri Jan 31 02:00:00 IST 2025: ## Apple’s December Quarter Earnings: China Sales and AI Strategy in Focus
**CUPERTINO, CA** – Apple is set to report its December-quarter earnings Thursday after the bell, a period typically its strongest due to holiday sales and new iPhone launches. While analysts aren’t overly concerned about the quarter’s performance, they’ll be closely scrutinizing indicators for the upcoming March quarter.
Concerns are rising regarding weakening sales in China, particularly regarding iPhone 16 demand, which is reportedly softer than expected despite the launch of iOS 18 and its AI features. Some analysts predict a fourth consecutive year of iPhone unit decline. Apple, which doesn’t release unit sales data or provide traditional guidance, will likely offer clues during the earnings call for analysts to project March quarter performance.
LSEG projects a 3.8% year-over-year revenue increase to $124.13 billion, aligning with Apple’s October prediction of low-to-mid single-digit growth. A key focus will be on whether declining Chinese sales reflect a consumer shift towards domestically produced devices, a trend noted by analysts at Goldman Sachs.
However, Apple’s services sector, encompassing offerings like warranties and Apple TV+, could offset potential iPhone sales weakness, with Barclays analysts predicting a 14% annual growth rate. The company is also expected to address questions surrounding its strategy regarding proposed tariffs and its overall AI development.
Analysts currently forecast $1.66 in earnings per share and $95.46 billion in revenue for the March quarter. The earnings call will provide crucial insights into Apple’s performance and outlook, especially in the face of evolving market dynamics in China and the global competition.
First Piper 