Apple revenue grew 6% in its fiscal fourth quarter, as sales of iPhones rebounded and the company posted growth in all its business units save for the category that includes wearable devices.
Total sales in the three months ended September 28 increased year over year to $94.9 billion, coming in slightly above Wall Street estimates of $94.6 billon, Apple reported on Thursday. Sales of Apple’s all-important iPhone grew by 5.4% to $46.2 billion, reversing two consecutive quarters of declining sales. Apple released its new iPhone 16 in September, meaning that only about one week’s worth of sales were included in the quarter’s results.
Apple CEO Tim Cook said on a conference call that iPhone sales set a September revenue record, with growth in every geographic segment.
Apple’s net income decreased 35% from the year-ago period, at $14.7 billion, or 97 cents a share, due to a one-time tax charge “related to the impact of the reversal of the European General Court’s State Aid decision.” Excluding the charge, Apple said, its EPS would have been $1.64. Analysts had been expecting EPS of $1.60.
Shares of Apple initially bounced around between positive and negative territory after the earnings report’s release, but then settled into a decline of between 1% and 2%, to roughly $224 per share.
Mac computers eked out a 1.3% increase in sales to $7.7 billion, while iPad sales grew by 7.8% to $6.9 billion.
The only Apple business category that declined in the quarter was the wearables, home, and accessory group, which includes the Apple Watch, AirPods, and the costly Apple VisionPro headset. Net sales for the unit fell 3% year over year to $9 billion.