Apple Reports Mixed Q4 Results: iPhone Strength, China Business Concerns
Apple faces a decline in after-hours trading as the company’s December-quarter results reveal a blend of positive and concerning aspects. While iPhone sales showed strength, the growth in services fell below expectations. Of particular concern is the worrisome decline in Apple’s China business, with Greater China sales dropping 13% from a year ago to $20.8 billion. CEO Tim Cook noted a mid-single-digit decline in iPhone sales in China, indicating higher declines for other hardware products.
Key highlights from Apple’s Q4 report:
- Revenue reached $119.6 billion, a 2% increase from a year ago, breaking a four-quarter trend of revenue declines.
- Profit per share was $2.18, surpassing the Wall Street consensus forecast of $2.11.
- iPhone revenue amounted to $69.7 billion, up 6%, exceeding the consensus forecast of $65.8 billion.
- Services revenue reached $23.1 billion, a growth of 11%, slightly below the consensus view at $23.3 billion.
- Mac sales were $7.8 billion, nearly flat compared to a year ago, slightly below the consensus of $7.9 billion.
- iPad sales were $7 billion, down 25%, falling short of the Street’s $7.4 billion forecast.
- Wearables, home, and accessories revenue amounted to $12 billion, surpassing consensus at $11.3 billion but down 11% from a year ago.
- Overall product sales totaled $96.5 billion, roughly flat compared to a year ago.
Regional breakdown:
- Americas sales were $50.4 billion, up 2%.
- Europe sales were $30.4 billion, up 10%.
- Japan sales were $7.8 billion, up 15%.
- Sales in the rest of the Asia Pacific region were $10.2 billion, up 7%.
Apple’s shares experienced a 1.7% decline in after-hours trading following the report, reflecting investor concerns over the mixed results and challenges in the China market.
