Apple rebounds with revenue growth, but China challenges persist

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Apple's third-quarter results revealed a return to sales growth, exceeding Wall Street expectations across all product lines. The company's optimistic outlook suggests continued growth in the current quarter, mirroring the 5% increase achieved in the previous period.

However, China remains a persistent hurdle. While Apple reported improvements compared to the first half of the year, revenue in the region fell short of analyst forecasts and declined year-over-year. Despite executive optimism, the Chinese market continues to pose challenges.

The services segment remains a bright spot—with double-digit growth projected for the current quarter. In contrast, Apple provided no specific guidance for hardware or iPhone sales, suggesting a cautious outlook amidst a sluggish smartphone market.

While Apple's earnings call generated significant hype around Apple Intelligence, its potential impact on near-term iPhone sales remains questionable. While the technology may drive growth in the mid-term, its influence on the upcoming holiday season appears limited.