Apple Inc. recently released its financial results for the fourth quarter, indicating stronger-than-expected earnings driven largely by robust demand for the newly launched iPhone 18 Pro series. The company also managed to mitigate some of the impact of rising storage chip costs through price increases across its product lines. Notably, revenue in the Greater China region rose by an impressive 21% year-over-year during this quarter.
According to data from the London Stock Exchange Group (LSEG), Apple reported a fourth-quarter revenue of $114.48 billion, surpassing analysts’ forecasts of $113.39 billion. The earnings per share (EPS) for this period stood at $2.10, comfortably exceeding the projected $1.99.
The financial report underscores that the iPhone remains Apple’s flagship product, accounting for more than half of the company’s total revenue. Specifically, the revenue from iPhones in the fourth quarter reached $57.58 billion, which includes sales from the iPhone 18 Pro series but excludes sales from the iPhone Duo. This figure exceeded the earlier analyst expectation of $56.54 billion. Meanwhile, revenue from Mac sales was recorded at $10.79 billion, significantly above the expected $9.61 billion, while iPad revenue came in at $6.23 billion, falling short of the anticipated $6.7 billion.
Apple announced on Monday that its fourth-quarter revenue had increased by 12% from $102.5 billion a year earlier, slightly surpassing Wall Street’s estimates. A closely watched figure, the gross margin for the quarter, was reported at 47.9%, surpassing analyst predictions of 47.5%. However, growth in Apple’s higher-margin services sector continued to slow. According to LSEG, the revenue from Apple’s services business was reported at $31.57 billion, essentially in line with the expected $31.58 billion.
The Greater China region, which includes mainland China, Taiwan, and Hong Kong, experienced significant growth in Apple’s business, with revenue reaching $17.53 billion in the fourth quarter, up 21% year-over-year. Apple attributed this growth to strong sales of both the iPhone and Mac. Market research firm Counterpoint Research indicated that sales of the iPhone 18 Pro series in China increased by 29% during the first three weeks following its launch, marking the highest growth rate among major markets.
This financial report is the first since John Ternus took over as Apple’s CEO on September 1, succeeding Tim Cook.
Ternus noted that, according to industry research reports, Apple’s market share also saw an increase in the fourth quarter.
In an interview reported by The Wall Street Journal, Apple’s Chief Financial Officer Kevan Parekh acknowledged that the rise in memory and storage chip costs did affect Apple’s financial performance for the fourth quarter, but the company successfully mitigated some of that impact.
“Price increases have indeed helped offset some of the cost increases,” Parekh stated.
Alongside the launch of the iPhone 18 Pro series, Apple implemented a $100 price increase on the iPhone 17 series and raised the prices of certain MacBook models. This strategy has, to some degree, alleviated the concern over continuously rising storage chip prices.
Overall, Apple’s financial results paint a picture of resilience and strategic maneuvering in a competitive landscape, positioning the company favorably for continued growth moving forward.