Apple’s sales during the final quarter of the concluded fiscal grew by 7.9% from last year to $102.5 billion, marginally higher than the average analyst estimate of $102.2 billion. Earnings per Share (EPS) stood at $1.85, higher than the average estimate of $1.77.
Tariffs led to additional expenses worth $1.1 billion during the quarter and the ongoing period will see that figure rise to $1.4 billion, according to the management.Despite hopes of a bumper quarter, Apple’s stock lagged as revenue from another core market, China, disappointed. Greater China’s revenue declined by 3.6% from last year to $14.5 billion, well below the $16.4 billion that analysts were working with. Competition from local manufacturers and a struggle to offer AI features in the country have kept a lid on growth.
However, CEO Tim Cook is hopeful that China will return to growth during the ongoing quarter.iPhone sales grew 6.1% to $49 billion led by the launch of new models, but fell short of the $49.3 billion estimates. Apple attributed the limited growth to supply constraints. “We expect iPhone revenue to grow double-digits year over year, which would be our best iPhone quarter ever,” CFO Parekh said.
The recently concluded quarter only included two weeks of the iPhone 17 and the initial response has been strong with reports suggesting that it has outsold the iPhone 16 by over 14% during the first 10 days of sales.
Apple’s services business grew by 15% year-on-year but continues to face challenges from regulators seeking to change its App Store policies, which could impact software and subscription revenue for the company.
Shares of Apple gained 2.5% in afterhours trade to $278.02. The stock ended 0.4% higher in regular trading.
(With Inputs From Agencies.)
