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Apple and Amazon Report Mixed Earnings, Highlighting AI Expansion and Challenges in China

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Tech giants Apple and Amazon reported contrasting September-quarter earnings, revealing a mixed outlook for their businesses amid fierce competition in artificial intelligence (AI) and continued challenges in the Chinese market.

Apple Sees Decline in China Sales Despite Overall Growth

Apple reported a slight drop in sales within Greater China, its third-largest market, extending a downward trend that has lasted over a year. Revenue from the region fell by 0.3% year-over-year, a minor improvement over last year’s 6.5% drop, yet short of the rebound investors anticipated. Apple attributed part of this decline to competition from local smartphone manufacturers and the recent, delayed release of iOS 18.1, which adds AI features to the new iPhone 16.

Apple’s overall revenue, however, reached a record high for the September quarter, rising by 6.1% to $94.93 billion (€87.22 billion), exceeding the estimated 5.7% growth. iPhone sales totaled $46.22 billion (€42.47 billion), up 6% from the same period last year and beating market expectations. Services revenue also continued to grow steadily, reaching $24.97 billion (€22.94 billion), though its growth rate slowed from 14% in the previous quarter to 12%.

Despite strong revenue figures, Apple’s net income was notably impacted by a one-time charge related to the reversal of the European General Court’s State Aid decision, which led to earnings per share of $0.97 (€0.89). Excluding this charge, earnings per share would have increased by 12% to $1.64 (€1.51). Apple also announced a modest outlook for the December quarter, projecting growth in the low-to-mid-single digits, falling short of analysts’ expectations for 7% annual growth.

In a key area, Apple is perceived to be lagging behind its peers in AI development, with limited monetization of its Apple Intelligence applications. Additionally, the company faces potential regulatory challenges in Europe, where new requirements for third-party payment options could affect profitability. Nevertheless, market analysts remain optimistic. “This is just a temporary setback, not the end of the story,” said Oanda’s Josh Gilbert, maintaining confidence in Apple’s long-term value.

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Amazon Beats Market Expectations with Strong Holiday Season Forecast

In contrast, Amazon delivered robust quarterly results, outperforming market expectations in both revenue and profit. The e-commerce giant reported $158.88 billion (€146 billion) in revenue, an 11% increase from last year, exceeding the forecasted $157.2 billion. Amazon’s advertising sales grew by 19% year-over-year to $14.3 billion (€13.14 billion), slightly below projections, while its AI-driven Amazon Web Services (AWS) posted a 19% rise to $27.45 billion (€25.22 billion), solidifying its market leadership in cloud services.

Amazon’s online store sales, its largest revenue segment, grew by 7% to $61.4 billion (€56.42 billion). The company also exceeded analysts’ guidance expectations for the upcoming quarter, projecting revenue of $188.5 billion in the December quarter, driven by strong holiday demand.

CEO Andy Jassy expressed optimism as Amazon heads into the holiday season, teasing new AI-powered features. “As we get into the holiday season, we’re excited about what we have in store for customers,” Jassy said, alluding to upcoming Prime Video events and over 100 new AI capabilities to be showcased at AWS re

later this month.

Despite Amazon’s success, capital expenditures jumped by 81% to $22.62 billion, reflecting a trend among tech companies to boost investments in AI infrastructure. CFO Brian Olsavsky noted that this increase is primarily aimed at supporting the rising demand for advanced technologies, a strategy he said would ultimately benefit Amazon’s growth.

While Apple faces hurdles in China and AI expansion, Amazon’s strong guidance and tech investments suggest a confident outlook as both companies navigate a competitive landscape.

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Kennedy Center to Close for Repairs After Judge Blocks Trump Naming Plan

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Most of Washington’s Kennedy Center will close for renovations after its board voted Tuesday to shut the landmark performing arts venue, hours after a federal judge blocked another attempt to add President Donald Trump’s name to the building.

The decision followed a ruling by US District Judge Christopher Cooper, who said the Kennedy Center board could not install a memorial to Trump or change the institution’s name without approval from Congress. The judge had previously ordered Trump’s name removed after it was added to the building’s facade.

“Simply put, Defendants cannot install memorials for President Trump or anyone or anything else at the Kennedy Center without Congress’s blessing,” Cooper wrote in his latest ruling.

Trump has said the renovation work, for which Congress has allocated $257 million, will not proceed unless the courts allow the board to move forward with plans to recognize him on the building. He said the Justice Department would appeal Cooper’s decision.

The board, which Trump chairs after replacing members with his appointees, voted to close the venue as it faces extensive repair needs and financial difficulties. Trump participated in the board’s virtual meeting, where the dispute over the institution’s future produced tense exchanges with Rep. Joyce Beatty, an Ohio Democrat and ex-officio board member who has opposed efforts to add Trump’s name.

The Kennedy Center has argued that the building requires major work. A partial ceiling collapse in a main hallway earlier this month added to concerns about the condition of the facility. Reuters reported that the closure could last as long as two years.

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The dispute over the building’s name began after Trump’s return to the White House. The board first added his name to the facade, but Cooper ruled in May that the change was unlawful because Congress had established the Kennedy Center as a memorial to President John F. Kennedy. Workers removed Trump’s name in June, leaving scaffolding and a tarp covering part of the facade.

In August, the board voted to add an inscription describing the center as restored and renovated by Trump and proposed renaming the plaza outside the venue. It also considered another inscription if the Trump Kennedy Center Fund raised $100 million. Cooper’s latest ruling blocked those plans.

The court dispute has coincided with financial problems at the institution. Court filings have described declining ticket sales and contributions, while several artists and organisations have canceled performances or moved activities elsewhere. The board has argued that Trump’s involvement and fundraising are important to the center’s financial future.

The Kennedy Center, which opened in 1971, hosts major performing arts organisations and events including the annual Kennedy Center Honors. Its future now depends on the renovation process, the court appeal and decisions over how the institution will be financed and managed.

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Brent Crude Climbs Above $108 as Hormuz Strike and Saudi Pipeline Shutdown Raise Supply Fears

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Brent crude prices climbed above $108 a barrel on Monday as growing disruption around the Strait of Hormuz raised fresh concerns about global oil supplies.

Brent crude for October and November deliveries rose by more than 3% during morning trading, extending gains from the previous week when prices moved back above the $100 mark. US West Texas Intermediate crude for October delivery also advanced, rising about 2.3% to around $102 a barrel.

The latest increase followed Saudi Arabia’s announcement that its East-West oil pipeline had been temporarily shut after drone attacks. The pipeline transports crude across Saudi Arabia to ports on the Red Sea, providing an alternative route that allows exports to bypass the Strait of Hormuz.

The closure comes as shipping through the strategic waterway faces growing risks. An unnamed merchant vessel was struck in the strait on Sunday, killing one crew member and injuring three others, according to Iranian authorities.

Shipping conditions have changed significantly since the conflict began. Vessels are required to obtain permission from Iran to pass through the waterway, while Tehran is also considering a system for charging transit service fees. Ships that do not comply have faced attacks, while US forces have carried out periodic strikes along Iran’s coastline.

Diplomatic efforts to address the situation have also suffered a setback. Oman postponed planned talks between Iran and Gulf states concerning the future of the waterway, which is one of the world’s most important routes for seaborne oil shipments.

The disruption is already affecting fuel markets beyond the Gulf. In the United States, the national average price of diesel surpassed $6 a gallon on Friday for the first time, rising from about $5.85 a week earlier and roughly 60% above the $3.71 recorded a year ago.

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US petrol prices have also reached record levels, averaging about $4.22 a gallon after rising over the Labor Day weekend.

President Donald Trump has blamed Ukraine for part of the diesel supply pressure, saying Ukrainian President Volodymyr Zelenskyy should stop targeting Russian diesel infrastructure. Ukraine has attacked more than 20 Russian refinery targets this summer, while Russia responded by banning diesel exports.

According to Lipow Oil Associates, Russia’s export restrictions have removed about 800,000 barrels per day of diesel supply, while disruptions linked to the Strait of Hormuz have affected around 1.2 million barrels per day.

The broader impact on crude supplies is even greater. Oil flows through the Strait of Hormuz have fallen from about 20 million barrels per day before the war to roughly 7 million. The conflicts have also disrupted refineries representing about 5 million barrels per day of capacity, adding to pressure on global fuel markets.

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Google Plans €13 Billion Investment in Finland Data Centres

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Google is set to invest at least €13 billion in data centres and digital infrastructure in Finland over the next two years, marking the company’s largest single investment in Europe as it expands its capacity for artificial intelligence and other digital services.

The investment will support data centres and related infrastructure in the Finnish municipalities of Hamina, Kajaani, Muhos and Vaala. Google also plans to fund clean energy projects as well as initiatives focused on biodiversity, education, research and workforce development.

The company said the decision reflects Finland’s strong position in developing energy-efficient infrastructure for artificial intelligence. The new facilities will support a range of Google services, including its Gemini chatbot.

Construction is expected to take place during 2027 and 2028. Google estimates the investment could contribute around €3.6 billion annually to Finland’s gross domestic product and support more than 37,000 jobs. About 16,000 of those positions are expected to be linked directly to construction work.

Once construction is completed, Google expects its facilities and related economic activity to support around 7,000 jobs each year. These positions are expected to include technical and facility roles, equipment suppliers and workers in nearby shops, restaurants and other services.

Finnish Prime Minister Petteri Orpo welcomed the announcement, saying the investment demonstrated the country’s strengths and could generate benefits beyond the immediate spending.

“The value of the data economy extends far beyond direct investment into spurring innovation, research and development,” Orpo said. He added that closer cooperation with Google could produce long-term benefits for both sides.

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Why Finland is attracting data centres

Finland’s climate and energy supply are major factors behind its appeal to technology companies. Data centres consume large amounts of electricity and produce substantial heat, making cooling a major operational cost.

The country’s cold climate can help reduce cooling requirements, while its energy system includes nuclear power, wind and hydropower. The combination of relatively stable electricity supplies and favourable conditions for cooling has encouraged a growing number of data centre projects across Finland.

Google has maintained a presence in the country since 2009, when it acquired a former paper mill in the coastal city of Hamina and converted the site into a data centre. The company has expanded the facility over the years.

The latest investment comes as Finland faces weak economic growth and record unemployment. For Orpo’s government, attracting major technology investments has become an important economic priority.

With the country’s data economy offering prospects for investment, employment and research, Google’s announcement is expected to strengthen Finland’s position as a major European hub for digital infrastructure and artificial intelligence.

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