Apple (AAPL) on Thursday, August 3, reported diluted earnings per share of $1.26 in Q3 of fiscal 2023 (+5% annually), beating analysts' expectations. Analysts were expecting the company to earn $1.18 per share on $81.8 billion in revenue.

The company's revenue for the quarter, however, fell 1% from a year earlier to $81.8 billion. Meanwhile, operating profit for the reporting fell to $22.9 billion from $23.1 billion a year earlier. Net income rose 2% to $19.8 billion, while iPhone sales fell 2.7% to $39.6 billion, which caused investors’ concern and pulled the stock down. Apple generated $39.7 billion in iPhone-related revenue, while iPad and Services came in at $5.8 billion and $21.2 billion, respectively. Shares of Apple fell 2.05% in today’s premarket trading following the report, on top of yesterday’s decline by 0.73%.

Apple hasn’t introduced any new models recently and saw some weakness in the Americas, with revenue of $35.38 billion for the quarter, compared with $37.47 billion a year earlier. By contrast, sales to China, which has showed some economic softness following Covid-19-related lockdowns, generated $15.75 billion during the period, compared with $14.6 billion a year earlier. At P/E of around 34, comparing with Samsung Electronics’ 8.2X, without any new bigger marketing announcements, Apple tends to look overvalued.