Apple Inc has posted stronger-than-expected revenue in the fiscal fourth quarter, giving new CEO John Ternus an upbeat start to his tenure, which began in September.
The solid results on Monday bucked a downward trend for tech giants this quarter, as companies including Alphabet, Amazon and Intel had disappointing quarterly results.
The Cupertino, California-based company earned $US30.71 billion ($A43.88 billion), or $US2.10 ($A3.00) per share, in the July-September period.
That’s up 12 per cent from $US27.47 billion ($A39.25 billion), or $US1.85 ($A2.64) per share, in the same period a year earlier. Apple said its earnings included 5 cents per share from tariff refunds.
Revenue rose 12 per cent to $US114.5 billion ($A163.6 billion) from $US102.5 billion ($A146.5 billion).
Analysts, on average, were expecting earnings of $US1.99 ($A2.84) per share on revenue of $US113.4 billion ($A162 billion), according to a poll by FactSet.
Apple recently hiked its prices partly due to a global memory chip shortage brought on by the artificial intelligence boom, which helped drive revenue.
Compared with earlier generations, the iPhone 18 costs about $US100 ($A143) more and the price of 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, adding that record iPhone revenue and strong growth in China demonstrate the resilience of Apple’s business.
While its rivals are facing investor uncertainty over massive investments in artificial intelligence, Bourne said Apple’s “tepid approach” to AI infrastructure spending helps preserve its cash flow – while partnerships with companies like Alphabet could help Apple to strengthen its AI capabilities without taking on the same financial risks as its peers.
The iPhone Duo, Apple’s first foldable phone that starts at $US1,999 ($A2,856), was not yet on sale during the company’s fiscal fourth quarter, so it wasn’t included in the earnings results.
Demand has been strong for the pricey model, even though some users have reported problems that include cracked screens, which Apple is fixing or replacing. Apple is also dealing with supply constraints for the Duo, which went on sale in October, though current earliest shipping dates are for January.
Apple’s shares were flat in after-hours trading. The stock had closed down 1.8 per cent at $US338.32 ($A483.42) in regular trading.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
