Why Did Apple Shares Dip on NASDAQ and ETR Despite Surpassing Earnings Estimates?

May 02, 2025 12:31 AM PDT | By Team Kalkine Media
 Why Did Apple Shares Dip on NASDAQ and ETR Despite Surpassing Earnings Estimates?
Image source: shutterstock

Highlights

  • Apple exceeded earnings and revenue expectations but shares declined in after-hours trading.

  • Services segment missed revenue projections; sales in Greater China declined year-over-year.

  • The company announced a substantial share repurchase program and dividend increase.

The technology sector, a cornerstone of major global equity benchmarks like the NASDAQ Composite and Germany’s DAX, often experiences fluctuations linked to corporate earnings. Apple Inc. (NASDAQ:AAPL), one of the highest-profile companies in this sector, released its fiscal first-quarter results, revealing mixed outcomes across product categories and geographical markets.

Earnings Surpass Forecasts but Share Price Falls

Apple reported per-share earnings above market estimates, with earnings per share exceeding earlier projections by a narrow margin. Revenue also exceeded prior year figures, highlighting steady top-line growth. Despite this, the company's share price experienced a decline in extended trading, reflecting broader market reaction to certain areas of underperformance within the results.

Segment Trends and Revenue Breakdown

Revenue from the iPhone category increased modestly compared to the prior year, maintaining its position as a primary revenue contributor. The iPad line posted stronger performance, showing growth that outpaced the broader hardware segment. Meanwhile, the Services division, which includes cloud, media, and financial offerings, came in slightly below expectations. The performance of this unit remains closely observed due to its role in long-term margin expansion and ecosystem integration.

Greater China Reports a Revenue Decline

Apple’s performance in Greater China showed a year-over-year decrease in revenue. This drop attracted attention from market participants given the importance of the Chinese market to Apple's global footprint. The results suggest varying consumer sentiment or competitive pressures in the region, which may be influencing purchase patterns and regional supply chains.

Corporate Actions to Support Shareholder Returns

As part of its capital management framework, Apple approved a new share buyback program. The program, amounting to a sizeable commitment, was launched alongside a quarterly dividend increase. These measures reflect the company’s ongoing focus on returning capital to shareholders and maintaining confidence in its financial position.

Regional Revenue Comparison

Regional data showed differing performance levels across markets. Japan experienced notable revenue growth, while the Americas region also delivered a solid uplift. Europe registered a more subdued gain. Other parts of the Asia-Pacific region, outside of Greater China, posted an increase in revenue, helping to balance the impact of softer performance elsewhere.

Upcoming Developments and Product Pipeline

Apple has signaled future developments in its hardware portfolio, with new versions of its smartphone and computing lines expected to feature updates to proprietary chip technology. In addition, the leadership emphasized the company’s sustainability goals, which remain part of its broader strategic narrative.


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