(Nov 3) : Apple Inc. posted September quarter revenue that narrowly topped analysts’ estimates, even as sales in the key Chinese market fell short of projections.
Revenue rose 12% to US$114.5 billion during the fiscal fourth quarter, which ended Sept. 26, the company said in a statement Monday. Analysts had estimated US$113.5 billion on average, according to data compiled by Bloomberg.
The quarterly report — the first under new Chief Executive Officer John Ternus — offered a mixed picture to investors. Sales growth decelerated from a 16% clip in the June quarter, and results from Apple’s iPad and wearables businesses were particularly weak. But the iPhone, the company’s biggest moneymaker, remained strong.
Apple shares climbed less than 1% in late trading after the report was released. They had gained 24% this year through the close.
Ternus became CEO on Sept. 1, putting him in charge for the final month of Apple’s fourth quarter. He has since overseen the unveiling of the foldable iPhone Duo, touch-screen MacBook Pro and HomeView hub, though none of those products went on sale until the current quarter, which runs through December.
Apple typically provides revenue guidance for the current period during its earnings call. Wall Street will be closely watching for signs of how much the foldable iPhone could contribute to holiday-quarter sales, as well as commentary on when Apple expects supply of the device to catch up with demand.
Apple itself had projected revenue growth of 9% to 11%. Though sales from greater China increased 21% to US$17.5 billion, that was more than US$1 billion short of estimates.
Revenue from the iPhone grew 17% to US$57.6 billion during the quarter, topping an average estimate of US$56.5 billion. That shows the company is weathering a schedule change in its product releases. Apple typically launches multiple new iPhones in September, but this time only released the iPhone 18 Pro line.
A regular iPhone 18 and new iPhone Air aren’t arriving until the first half of 2027, while the foldable iPhone Duo didn’t launch until Oct. 23 — deep into the following quarter.
Services, a segment that includes music streaming, the App Store, iCloud subscriptions, Apple TV and other digital offerings, rose 9.8% to US$31.6 billion. That matched estimates. Earnings came in at US$2.10 a share, topping an estimate of US$2.
Mac revenue climbed 24% to US$10.8 billion. That smashed the average projection of US$9.7 billion. And a wave of new products should help keep momentum going. The company’s touch-screen MacBook Pro, refreshed iMac and new low-end MacBook Pro ship on Nov. 6.
Apple is planning to keep updating the Mac in the coming months. That includes a new MacBook Neo and MacBook Air early next year, Bloomberg News has reported.
The iPad brought in US$6.23 billion, missing an estimate of US$6.9 billion. A new iPad mini is launching in the current quarter, while a new iPad Air, low-end tablet and iPad Pro refresh are coming next year.
The wearables, home and accessories category brought in US$8.3 billion, declining 7.9% from a year earlier. That missed a prediction of US$9 billion. The company launched the AirPods 5 earbuds and two smartwatches in the fourth quarter, but all the updates were relatively minor.
uploaded by Isabelle Francis