Apple Inc. reported fourth-quarter results Thursday that exceeded Wall Street’s expectations for both profit and revenue, even as iPhone sales and revenue from China lagged behind analyst forecasts.
Shares in Apple rose 2.3% in after-hours trading, buoyed by optimistic guidance from CEO Tim Cook. On the company’s post-earnings call, Cook highlighted robust demand for the iPhone 17, which he said is experiencing supply shortages due to its popularity. Although revenue from Greater China was subdued in the last quarter, Cook expressed confidence in a recovery for the region in the first quarter.
The quarterly update arrived shortly after Apple surpassed the $4 trillion market value milestone, joining a distinguished group that includes Microsoft (MSFT) and Nvidia (NVDA). While Microsoft has recently slipped below that threshold, Nvidia has surged past a $5 trillion valuation.
For the quarter, Apple posted earnings per share of $1.85 on $102.5 billion in revenue, outperforming analysts’ consensus forecast of $1.77 in earnings per share and $102.2 billion in revenue.
Revenue from the iPhone segment totaled $49.03 billion, coming in just under the $49.3 billion analysts had projected. Sales from Greater China were also lighter than anticipated at $14.49 billion, missing the $16.43 billion consensus estimate.
On a positive note, Apple’s Services division, its second-largest business segment, generated $28.7 billion in revenue, surpassing Wall Street’s expected $28.2 billion. The iPad and Mac businesses reported revenues of $6.95 billion and $8.73 billion, respectively, while wearables brought in $9 billion.
“We expect the December quarter’s revenue to set all-time records for the company and for the iPhone,” Cook told investors.
