Apple beats revenue expectations, shares dip

Apple reported its fiscal fourth-quarter results, showing better-than-expected performance with revenue of $94.93 billion and adjusted earnings per share of $1.64, surpassing Wall Street estimates. However, shares declined up to 2% in after-hours trading.

iPhone revenue grew 6% to $46.22 billion, marking the first indication of iPhone 16's market performance. CEO Tim Cook noted stronger sales compared to previous models, with the device accounting for nearly 49% of overall sales.

The company's net income decreased to $14.73 billion ($0.97 per share) from $22.96 billion ($1.47 per share) year-over-year, primarily due to a one-time $10.2 billion tax charge related to an Irish tax case from 2016. Adjusted earnings per share, excluding this charge, increased 12% annually.

Apple's iPad segment showed the strongest hardware growth at 8% ($6.95 billion), while Mac revenue rose 2% ($7.74 billion). Services revenue grew 12% to nearly $25 billion, though falling short of expectations. The Other Products category, including AirPods and Apple Watch, declined 3% to $9.04 billion.

For the December quarter, Apple projects "low to mid-single digit" sales growth and expects services growth to maintain its current annual rate of about 12.87%. The company's full fiscal year revenue increased 2% to $391.04 billion, with a current cash reserve of $156.65 billion.

Chinese market performance remained a focus point, with revenue in China, Taiwan, and Hong Kong slightly declining to $15.03 billion amid increased local competition.