Strong iPhone sales were the main driver of Apple’s record revenue for the fourth quarter, which came to $94.9 billion, a 6% rise from $89.5 billion in the same period last year. According to FactSet, this outcome exceeded Wall Street’s estimated $94.46 billion. With the iPhone alone contributing $46.22 billion, up 6% from $43.81 billion during the same time last year, there may be more demand than anticipated for the newest models, especially the iPhone 16.
Apple announced net sales of $94.3 billion, driven by strong performance in all its products, which include iPhone, Mac, iPad, and Services. The company also declared a massive drop in net income. It was at $14.74 billion, versus last year’s $22.96 billion, missing expectations for a level at $24.24 billion. The decrease resulted primarily from a one-time charge regarding the settlement of a tax case with European regulators amounting to $10.2 billion. After hours, Apple shares fell 1.33% from today’s closing price of 134.72.
One of the most important launches in the quarter was when it unveiled a new artificial intelligence feature—Apple Intelligence—for its iPhone 15 Pro and iPhone 16 models. Cook termed this AI update as “a new chapter” of innovation in Apple, Inc. which he announced during Apple’s September event. More expansions are planned for December, with ChatGPT integration being one of them, as hinted by Cook, and which will drive better user personalization and experience.
Industry analysts are divided on the impact of Apple Intelligence on future iPhone upgrades. While some see potential for increased sales, others, like Jefferies, suggest that current AI capabilities may be too limited to drive significant growth. User feedback has also been mixed, with complaints about long download times and occasional bugs. Still, Bank of America notes that these dynamic updates add meaningful value, positioning Apple well as AI becomes more integrated into daily use.