Apple Beats Expectations Due to Strong iPhone Demand

Apple’s fiscal Q4 delivered stronger-than-expected revenue of $94.93 billion, which exceeded Wall Street estimates and delivered a 6% rise in iPhone sales. 

Despite an impressive performance across its main revenue streams, Apple’s net income took a knock due to a one-time $10.2 billion tax charge related to a long-standing dispute in Europe. 

Adjusted earnings per share touched $1.64, a 12% annual increase after excluding the tax impact. The iPhone 15 and early sales of the iPhone 16 boosted overall iPhone revenue to $46.22 billion, accounting for nearly half of the company’s sales—a sign that Apple’s latest models are capturing market interest early in the cycle.

However, some areas failed to shine. iPad revenue saw an 8% boost, reaching $6.95 billion, but Mac sales only crept up by 2% to $7.74 billion, driven by demand for the updated MacBook Air. Apple’s services segment, of which iCloud and AppleCare a part, swelled 12% annually to nearly $25 billion but missed revenue expectations.

Looking into the future, Apple projects modest single-digit growth for the December quarter, aiming for steady services growth in the same ball park as last year’s 12.87%. The company closed the quarter with $156.65 billion in cash and spent $29 billion on share buybacks and dividends, reflecting strong shareholder focus. 

While facing global challenges, Apple remains resilient with a product lineup that continues to drive demand, positioning it for steady growth in an uncertain market