Apple revenue tops forecasts on iPhone demand

Apple reported fiscal fourth-quarter revenue of $114.48 billion on Monday, exceeding analyst projections of $113.39 billion.

The company generated $2.10 per share in profit for the quarter. This figure surpassed the $1.99 per share expected by analysts, a metric that excludes 5 cents per share attributed to tariff refunds.

iPhone sales drove the majority of the revenue. The division posted $57.58 billion in sales, beating estimates of $56.54 billion. This performance was fueled by early demand for the iPhone 18 Pro lineup and price increases on other models.

Chief Executive Officer John Ternus stated that the company raised prices on iPhone 17 models by $100 and increased costs for some MacBooks. These adjustments helped mitigate the impact of rising memory-chip costs, which Ternus described as higher than in the June quarter. Gross margins reached 47.9%, exceeding the 47.5% forecast by analysts.

Apple is currently testing new release strategies under Ternus, who assumed the role in September. The company spaced out its iPhone launches this year, shipping Pro and Duo models now while delaying other models to next year. It also introduced its first touchscreen laptops and a smart-home hub during the current holiday quarter.

Ternus told Reuters that the new AI-infused Siri handles 2.5 billion requests per day. He described the system as one built from the ground up. The company also reported Mac sales of $10.79 billion, well above the $9.61 billion estimate, driven by interest in hosting AI agents.

Supply constraints affect the new iPhone Duo, Apple's first foldable phone. Ternus said the device sold out online within hours and created lines at retail stores last month. He noted that a very small percentage of units returned for display issues are being replaced, but the company cannot yet predict when supply will match demand.

Services revenue came in at $31.57 billion, matching analyst estimates of $31.58 billion. iPad sales totaled $6.23 billion and wearables sales reached $8.30 billion. Both categories fell short of analyst estimates, which stood at $6.70 billion and $9.06 billion, respectively.