Apple Reports Strong iPhone Sales in Q4

Apple reported record revenue of $94.9 billion in its fiscal fourth quarter of FY 2024. The sales went up 6% year-on-year partially thanks to a 5.5% rise in iPhone sales to $46.2 billion.

CEO Tim Cook said Apple continues to see high levels of customer satisfaction for the iPhone 15 family, as its latest iPhone 16 models shipped on 20 September, merely a week before the end of the quarter. Cook also provided insight into the company’s Apple Intelligence software released as part of its iOS 18.1 update last week. “If you just look at the first three days, the 18.1 adoption is twice as fast as the 17.1 adoption was in the year-ago quarter. So there’s definitely interest out there for Apple Intelligence.”

Apple’s iPhone revenue in Greater China was flat at $15 billion. It faces increased competition from Xiaomi and Huawei, among others. Net income fell 35% to $14,7 billion due largely to a one-time income tax charge of $10.2 billion related to a European General Court ruling against Apple. The company's services business revenue of $24.9 billion was up 12%, a new all-time high. iPad revenue was $7 billion, up 8%, with wearables, home and accessories sales falling 3% to $9 billion.

CFO Luca Maestri stated product revenue was up 4% to $70 billion, driven by growth in iPhone, iPad, and Mac. Maestri predicted double-digit service revenue growth in fiscal Q1 2025. Cook thanked Maestri for truly exceptional work during a ten-year tenure as CFO, as the executive is moving to a new role in 2025, with VP of financial planning and analysis Kevan Parekh taking up the post.