Apple Beats Q4 Expectations, Projects Record Holiday Sales

Q4 Earnings Highlights

Apple's Q4 earnings report exceeded Wall Street expectations with earnings per share (EPS) of $1.85 and revenue of $102.5 billion, surpassing analyst estimates of $1.77 EPS and $102.2 billion in revenue. The company also set a record for its services segment, which generated $28.75 billion in revenue, slightly above projections of $28.2 billion. iPhone 17 sales contributed significantly to the company's strong performance, with iPhone revenue reaching $49.03 billion, although falling short of the anticipated $49.3 billion. Apple’s other product categories, such as wearables, iPads, and Macs, also delivered steady results, with revenues of $9 billion, $6.95 billion, and $8.73 billion, respectively.

CEO Tim Cook’s Optimistic Outlook

CEO Tim Cook expressed confidence in a record-breaking December-quarter revenue, attributing the optimism to high demand for the iPhone 17 lineup despite challenges. Cook highlighted supply constraints impacting the new models and noted weaker-than-expected revenue from Greater China, which came in at $14.49 billion compared to the forecasted $16.43 billion. However, he emphasized the strong customer satisfaction and loyalty driving growth. Cook projected a robust holiday season, with anticipated revenue growth of 10% to 12%, fueled by the improved design and features of the iPhone 17 Pro and Pro Max models.

Apple’s Market Milestone

Apple achieved a significant market milestone, with its market capitalization surpassing the $4 trillion mark, making it the second most valuable company globally, behind Nvidia. This milestone reflects investor confidence in Apple's ability to sustain growth despite challenges in the global economy and regional markets like China. The company’s strong financial results, coupled with an upbeat outlook for the holiday season, have bolstered market sentiment, resulting in a 4% increase in its stock price following the earnings report.