Apple Surpasses Expectations, iPhone 16 Fuels Revenue Growth
Apple Inc. (AAPL) delivered a strong performance in the fourth quarter, exceeding analyst expectations for both revenue and earnings. The tech giant reported fiscal fourth-quarter revenue of $94.9 billion, surpassing the anticipated $94.56 billion. Apple’s adjusted earnings per share also came in higher than expected at $1.64, beating analyst estimates of $1.60. This marks the seventh consecutive quarter where Apple has outperformed analysts’ forecasts on both the top and bottom lines.
Record Revenue Driven by iPhone 16 Lineup and New Products
Total revenue for the quarter climbed 6% year-over-year. The company’s product revenue reached $69.96 billion, a significant increase from $67.18 billion in the same period last year. Services revenue also saw substantial growth, hitting $24.97 billion, up from $22.31 billion year-over-year. This robust performance was fueled by strong demand for Apple’s latest products, including the iPhone 16 lineup, Apple Watch Series 10, and AirPods 4.
Product Breakdown Highlights iPhone Dominance
Here’s a closer look at product sales by category for the fourth quarter:
*
iPhone:
$46.22 billion (compared to $43.8 billion in the previous year) – The iPhone remains Apple’s flagship product, generating the largest share of revenue.*
Mac:
$7.74 billion (compared to $7.61 billion in the previous year)*
iPad:
$6.95 billion (compared to $6.44 billion in the previous year)*
Wearables, Home and Accessories:
$9.04 billion (compared to $9.32 billion in the previous year)Global Reach and Device Growth
Apple’s global reach continues to expand, with strong sales across all geographic regions. Americas sales totaled $41.66 billion, Europe sales reached $24.92 billion, Greater China sales hit $15.03 billion, Japan sales were $5.93 billion, and the rest of Asia Pacific sales generated $7.38 billion. Importantly, Apple reported that its active installed base of devices reached a new all-time high across all products and all geographic segments, reflecting the continued popularity and loyalty of Apple users.
CEO Tim Cook Highlights Innovation and Future Growth
Tim Cook, Apple’s CEO, expressed his excitement about the company’s performance and future prospects, saying, “Today Apple is reporting a new September quarter revenue record of $94.9 billion, up 6 percent from a year ago. During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection. And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season.”
Dividend Announcement and Outlook
Apple’s board declared a quarterly cash dividend of 25 cents per share, payable on November 14 to shareholders of record as of November 11. While the company did not provide specific forward guidance in its earnings release, a conference call with analysts and investors is scheduled for 5 p.m. ET, where Apple will likely offer insights into its expectations for future product performance.
Apple Stock Performance
Apple shares were up approximately 17.5% year-to-date heading into the earnings release. Following the announcement, the stock was down 0.91% in after-hours trading, reaching $223.85 at the time of publication.
