Apple Reports Fourth-Quarter Earnings

Apple's stock dropped 3% after new CEO John Ternus delivered first earnings call.

Earnings Beat Expectations

Apple reported fourth-quarter earnings per share of $2.10, exceeding Wall Street's target of $1.99.

Revenue Growth

Revenue rose 12% to $114.48 billion, surpassing the $113.39 billion analyst forecast.

Net Income

Net income reached $30.71 billion, up from $27.46 billion one year earlier.

iPhone Sales Missed

iPhone sales fell short of expectations despite higher product prices and strong revenue.

Services Revenue Slow

Services revenue grew less than 10% at $31.57 billion, its slowest rate since September 2022.

iPad Sales Decline

iPad sales dropped over 10% to $6.3 billion, trailing the $6.7 billion forecast.

Mac Sales Strong

Mac sales reached $10.79 billion, up 24% from the previous year.

AI Strategy Concerns

Apple's AI chatbot Siri was criticized as stale, lagging behind competitors like Dots and Muse.

Guidance Weak

Apple forecasted 7%-10% revenue growth for the next quarter, below Wall Street's 11.4% target.

CEO's Response

John Ternus said Apple has 'lots of opportunities' for monetization through hardware upgrades.

“One example is the hardware side, right? It offers a compelling reason for upgrading or switching.”

Market Reaction

Apple's stock fell 3% on the report but remains up 24% year-to-date compared to S&P 500's 10% gain.