Apple’s shares recently rose by 3% despite a decline in iPhone sales, thanks to a significant boost in services revenue.
The company’s overall revenue for the first fiscal quarter of 2025 reported an increase of 4% to $124.3 billion, surpassing Wall Street’s expectations.
However, iPhone sales fell short of estimates, totalling $69.14 billion compared to the expected $71.03 billion.
The services division, which includes subscriptions, warranties, and licencing deals, reported a revenue of $26.34 billion, a 14% increase from the same period last year. This growth in services revenue helped offset the decline in iPhone sales and contributed to the positive market response.
Apple CEO Tim Cook reportedly highlighted that iPhone sales were stronger in countries where Apple Intelligence is available.
The company reportedly plans to release additional languages for Apple Intelligence in April 2025, including a version in simplified Chinese.
The FTSE 100, London’s premier stock index, has recently achieved a new all-time high, closing at 8,646.88 on 30th January 2025.
This milestone marks a significant boost for the City of London, reflecting strong corporate performance, investor confidence, and favourable economic conditions.
Factors driving the surge
Several key factors have contributed to the FTSE 100’s impressive rise
Strong Corporate Updates – Companies like St James’s Place and Airtel Africa have reported robust financial results, attracting investor interest. St James’s Place, for instance, saw its shares rise by over 10% after announcing it had attracted £4.3 billion in assets last year.
Value Seeking – With extreme valuations of some American companies, international investors are looking for better value in London. The FTSE 100’s relatively lower price-to-earnings (P/E) ratio and high dividend yield make it an attractive option.
Return of ‘Animal Instincts‘ – The market has seen a resurgence of mergers and acquisitions, driven by investor optimism and confidence in the economic outlook.
Interest Rate Expectations: Hopes for further interest rate cuts by the Bank of England have also played a role in lifting the index. The European Central Bank’s recent decision to cut interest rates has further fueled investor optimism.
Weaker Pound – The pound’s weakness against the U.S. dollar has benefited many FTSE 100 companies that earn a significant portion of their revenues overseas. This has boosted the relative value of their foreign earnings when converted back to sterling.
Implications for the City of London
The new high represents a significant boost for the City of London, especially amid concerns that the market was losing ground to American exchanges.
The FTSE 100’s performance highlights the resilience and attractiveness of London’s financial markets, even in the face of global economic uncertainties.
FTSE 100 new high reached 30th January 2025
FTSE 100 new high reached 30th January 2025
The return of ‘animal instincts’ had prompted more mergers and acquisitions in London, while the extreme valuations of some American companies had sent investors looking for better value elsewhere. This shift in investor sentiment underscores the importance of London’s financial markets in the global economy.
Looking Ahead
While the FTSE 100’s recent performance is encouraging, it is essential to remain cautious. Market volatility and global economic uncertainties, such as the outlook for artificial intelligence-related growth stocks and the potential impact of a Trump presidency, could influence future market movements.
Nevertheless, the FTSE 100’s new all-time high is a testament to the strength and resilience of London’s financial markets. As investors continue to seek value and stability, the FTSE 100 is well-positioned to remain a key player in the global financial landscape.
A list of the companies in the FTSE 100 as of January 2025
