Apple’s latest fiscal results have exceeded Wall Street’s expectations for revenue and earnings per share, but the net income took a hit due to a one-time tax charge in Europe. Despite this, the company’s revenue reached $94.93 billion, with iPhone revenue accounting for $46.22 billion, marking a 6% increase in sales.
During the quarter, Apple paid a significant one-time income tax charge of $10.2 billion to resolve a tax case dating back to 2016. This impacted the net income, which stood at $14.73 billion, or 97 cents per share, down from $22.96 billion, or $1.47 per share, in the previous year. Adjusted earnings per share, after removing the tax charge, saw a 12% increase year-over-year.
Apple’s revenue for the full fiscal year amounted to $391.04 billion, a 2% rise, with a cash reserve of $156.65 billion. The latest iPhone 16 release contributed to the 6% growth in iPhone revenue during the quarter. Apple CEO Tim Cook highlighted the positive response to the new devices and the Apple Intelligence system, which was introduced in the iOS 18.1 update.
Sales of iPads and Macs also saw growth, with iPad sales increasing by 8% and Mac revenue rising by 2%. The services business, including subscriptions and warranties, grew by 12% to nearly $25 billion. However, revenue from the Other Products category, which includes wearables, experienced a 3% decline year-over-year.
Apple’s performance in China remains a focus, with revenue in the region slightly decreasing to $15.03 billion. The company also spent $29 billion on share repurchases and dividends during the quarter.
In comparison to other tech giants, Apple’s results have shown resilience, especially in the face of challenges from local competitors and shifting market dynamics. The company’s strategic focus on innovation and customer experience continues to drive its growth and market position. With ongoing developments in products and services, Apple remains a key player in the technology industry.
