Apple Inc. has reported a staggering $102.47 billion in revenue for its fiscal fourth quarter, surpassing Wall Street expectations and marking an 8% increase year-over-year. This financial triumph comes with earnings per share of $1.85, outpacing the anticipated $1.77 per share, demonstrating the tech giant’s robust market resilience.
Despite this significant overall performance, challenges persist, particularly in Greater China, which encompasses mainland China, Hong Kong, and Taiwan. Revenue from this crucial region saw a worrying 4% decline year-over-year, totaling $14.49 billion. This downturn has raised alarm bells among analysts regarding Apple’s operational stability in one of its key markets.
In after-hours trading, Apple’s shares remained flat following the earnings announcement, reflecting investor concern over the disappointing iPhone revenue figures rather than the company’s overall financial success. The iPhone segment, while generating $49.03 billion in revenue, fell short of analysts’ projections of $50.19 billion, largely due to ongoing supply constraints affecting numerous models.
iPhone Sales Short of Heights, Other Segments Thrive
CEO Tim Cook acknowledged the supply issues impacting the latest iPhone 17 models, which only contributed slightly to the quarter’s revenue following their recent launch. Nevertheless, the iPhone revenue still marked a respectable 6% growth compared to the previous year.
In contrast to the iPhone segment, sales of Mac computers exceeded expectations, bringing in $8.73 billion and beating the estimated $8.59 billion. This division reported an impressive 13% year-over-year growth, spurred by strong demand for the recently refreshed MacBook Air, which features a newly introduced $100 price cut.
However, the iPad segment lagged slightly, with revenue coming in at $6.95 billion—just missing the estimated $6.98 billion. This stagnation can be attributed to the absence of new iPad models being launched during the quarter.
The Other Products category, encompassing popular devices like AirPods, the Apple Watch, and the Vision Pro headset, delivered $9.01 billion in revenue, surpassing the $8.49 billion forecast but showing a slight decline compared to previous quarters.
Strong Services Division and Positive Outlook
Apple’s Services division, however, emerged as a beacon of growth, reporting $28.75 billion in revenue—exceeding the analyst expectations of $28.17 billion—with a remarkable 15% year-over-year increase. This growth is fueled by a diverse range of services, including App Store revenues, Apple Music subscriptions, and licensing agreements with Google.
Tim Cook expressed confidence in the Services segment’s performance, describing the results as a “run of the table.” He highlighted the consistent growth across various components of the Services division, suggesting a positive trajectory moving forward.
Looking ahead, Apple anticipates a record-breaking December quarter, projecting revenue growth between 10% and 12% year-over-year. This forecast implies potential December quarter sales of approximately $137.97 billion, which would mark a historic high for the company.
Cook noted that the iPhone revenue is also expected to grow by double digits year-over-year, suggesting a robust rebound after the current quarter’s disappointing figures. Signs of recovery in China are emerging, with heightened store traffic and positive reception for the new iPhone 17 series hinting at an upswing in consumer interest.
In addition to product innovations, Cook announced a significant upcoming enhancement to Siri, integrating advanced AI capabilities into Apple Intelligence. This move aims to enhance user experience and positions Apple amid fierce competition in artificial intelligence advancements.
Amidst tariff pressures and economic uncertainties, Apple has managed to maintain pricing strategies without transferring additional costs onto consumers. The company’s gross margin reached 47.2%, exceeding analysts’ expectations of 46.4%, reflecting effective cost management practices.
Lastly, Apple’s net income soared to $27.46 billion, a stark increase compared to $14.29 billion last year, due to the absence of one-time tax charges that impacted the previous year’s earnings. The company’s fiscal 2025 revenue reached $416 billion, marking a solid 6% increase over 2024.
