Apple's fourth quarter results were better-than-expected but revenue was down for the fourth consecutive quarter. Mac sales in the quarter were weaker than expected, but may get a lift with new MacBook Pro models on tap.
The company reported fourth quarter earnings of $1.46 a share on revenue of $89.5 billion, down 1% from a year ago.
Wall Street was expecting Apple to report fourth quarter earnings of $1.39 a share on revenue of $89.28 billion.
Here's a breakdown of Apple fourth quarter results by product line and their targets via LSEG.
- iPhone revenue: $43.8 billion; Estimate: $43.81 billion
- Mac revenue: $7.61 billion; Estimate: $8.63 billion
- iPad revenue: $6.44 billion; Estimate: $6.07 billion
- Wearables, Home and Accessories revenue: $9.33 billion; Estimate: $9.43 billion
- Services revenue: $22.31 billion; Estimate: $21.35 billion
In a statement, CEO Tim Cook said the company has a strong lineup for the holiday season including new Macs. Overall, Apple's game plan is to monetize its user base with services and subscriptions.
For fiscal 2023, Apple reported net income of $96.99 billion, or $6.13 a share, on revenue of $298.08 billion.
Other items to know:
- China revenue in the fourth quarter was $15.08 billion, down from $15.47 billion a year ago.
- Americas revenue was $40.11 billion, up from $39.8 billion a year ago.
- Europe and Japan revenue was down slightly from a year ago.
Constellation Resarch CEO Ray Wang said:
"Despite continued revenue decline, Apple is a digital giant and flight to safety stock in good times and bad. The macro conditions are elongating the iPhone replacement cycle. China is the challenge as iPhone 15 sales slow and Huawei has revamped its offerings. The elongation of iPhone replacement cycles is the headwind.
The new Mac Lineup provides cost savings and higher margins and could revitalize sales. The vertically integrated strategy is working For Mac, iPhone, Watch, and ultimately Vision Pro. Services is the bright spot. All eyes on the holiday forecast for the December quarter."