Apple Inc. announced stronger-than-expected revenue for its fiscal fourth quarter, a performance that provides a positive start for new CEO John Ternus, who took over in September. The company's results stood in contrast to a general downturn experienced by other major tech firms, including Alphabet, Amazon, and Intel, which reported disappointing quarterly figures.
During the July-September period, Apple generated $30.71 billion in earnings, or $2.10 per share, marking a 12% increase from $27.47 billion, or $1.85 per share, in the same quarter last year. Revenue climbed 12% to $114.5 billion, up from $102.5 billion a year prior. Analysts surveyed by FactSet had anticipated earnings of $1.99 per share on revenue of $113.4 billion.
Apple's recent price increases, partly influenced by a global memory chip shortage exacerbated by the artificial intelligence boom, contributed to its revenue growth. The iPhone 18 saw a price hike of approximately $100 compared to earlier models, and prices for Macs and iPads also increased in June.
"Apple’s strong earnings come in the wake of a recent tech sell-off, as investors question the enormous cost and uncertain returns of the AI boom driven by Apple’s Big Tech counterparts," said Emarketer analyst Jacob Bourne. He noted that record iPhone revenue and robust growth in China highlight the resilience of Apple's business. Bourne suggested that Apple's cautious approach to AI infrastructure spending helps preserve its cash flow, while collaborations with companies like Alphabet could bolster its AI capabilities without the substantial financial risks taken by its competitors.
The iPhone Duo, Apple's first foldable phone with a starting price of $1,999, was not available for purchase during the company's fiscal fourth quarter and therefore was not included in these earnings results. Despite some user-reported issues with cracked screens, which Apple is addressing, demand for the high-priced model has been strong. The device, which went on sale in October, is also facing supply constraints, with the earliest shipping dates currently in January.
Apple's shares remained unchanged in after-hours trading following the announcement. The stock had closed down 1.8% at $338.32 in regular trading.