Apple’s revenue increased by 6% in the fourth fiscal quarter, driven by a rebound in iPhone sales and growth across all business units except for wearables. Total sales for the quarter ended September 28 reached $94.9 billion, slightly exceeding Wall Street expectations of $94.6 billion. iPhone sales grew by 5.4% to $46.2 billion, marking a reversal from two consecutive quarters of decline. The release of the new iPhone 16 in September contributed to this growth, with only one week’s worth of sales included in the results.
During a conference call, Apple CEO Tim Cook highlighted that iPhone sales achieved a September revenue record, with growth seen in every geographic segment. Despite a 35% decrease in net income from the previous year to $14.7 billion, or 97 cents per share, due to a one-time tax charge related to the European General Court’s State Aid decision, Apple stated that excluding the charge, its earnings per share would have been $1.64. Analysts had anticipated earnings per share of $1.60.
Following the release of the earnings report, Apple’s shares fluctuated between positive and negative territory before settling into a 1-2% decline to around $224 per share. Mac computer sales increased by 1.3% to $7.7 billion, while iPad sales grew by 7.8% to $6.9 billion.
The only category within Apple that experienced a decline in the quarter was the wearables, home, and accessory group, which includes products like the Apple Watch, AirPods, and the Apple VisionPro headset. Net sales for this unit dropped by 3% year over year to $9 billion.
Stay informed about the tech industry’s biggest names with the Data Sheet newsletter. Sign up here.