Apple's first earnings report under new CEO John Ternus has met revenue expectations, surpassing Wall Street forecasts despite ongoing challenges including a global chip shortage. The company reported $114.48 billion in revenue, a 12% increase from the previous year's $102.5 billion, exceeding the anticipated $113.39 billion.
Revenue from the iPhone was particularly strong, reaching $57.58 billion, which surpassed estimates of $56.54 billion. This figure includes sales from the new iPhone 18 Pro, which launched late in the quarter. Analysts noted the strength of iPhone sales, especially in China, crediting Apple's upgrade cycle for its performance.
The company did, however, fall short on iPad sales. Apple has previously raised prices on Mac and iPad models due to a crunch in memory chip supplies. The report comes as Apple faces broader supply chain strains, including industry-wide shortages of advanced chipmaking technology and memory chips.
Investors are also watching the performance of the new iPhone Duo, Apple's foldable device. Despite significant consumer interest and overnight queues outside Apple stores, the device has faced early issues with reports of cracked screens near the hinge. Apple has stated it will replace affected devices, but CEO John Ternus acknowledged uncertainty regarding when supply will meet demand for the new model. The iPhone Duo's sales figures will be reflected in the next financial report as it launched after the current quarter concluded.
Apple shares showed little movement in after-hours trading following the announcement. The company's stock currently trades at a premium compared to the broader market, though earnings growth is projected to be more modest than that of some other tech companies. Ternus, who took over from Tim Cook in September, has reportedly been considering a significant overhaul of the company's engineering operations to increase product frequency and streamline its structure.