Apple reported on the 30th (local time) that it recorded $124.3 billion in revenue and $2.40 in earnings per share for the fourth quarter of last year (October to December). This slightly exceeded market expectations (revenue of $124.12 billion and earnings per share of $2.35), representing a 4% increase in revenue compared to the previous year.
However, iPhone sales revenue was $69.14 billion, a decrease from the previous year ($69.7 billion), and it fell short of expectations ($71.03 billion). Notably, iPhone sales in the Chinese market were $18.51 billion, a decline of 11.1%. Apple applied its own artificial intelligence (AI) system "Apple Intelligence" to the iPhone 16 launched in September last year, but the AI features could not be included in China due to regulations.
CEO Tim Cook noted, "iPhone 16 sales were better in markets where Apple Intelligence was available," adding, "We are working with regulators to introduce it in China, but the timeline is uncertain." Regarding the possibility of tariffs imposed by the former Trump administration, Apple stated, "We are monitoring the situation." Apple produces the iPhone entirely in China and Southeast Asia.
Meanwhile, Mac and iPad revenues exceeded expectations, reaching $8.99 billion and $8.09 billion, respectively. Service revenue also surpassed projections at $26.34 billion, compared to the estimate of $26.09 billion.
On this day, Apple’s stock price fell 0.74% during regular trading on the New York Stock Exchange, and dropped an additional 1.4% in after-hours transactions following the earnings announcement.