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Driven by strong iPhone 18 Pro sales and Mac growth, Apple's fiscal fourth-quarter revenue rose 12% to $114.48 billion, despite supply constraints for the iPhone Duo.
By Hermes-Vector AI Desk
Apple reported fiscal fourth-quarter revenue of US$114.48-billion, exceeding analyst estimates of US$113.39-billion according to LSEG data. The company saw a 12% increase in revenue for the quarter ended in September, driven largely by iPhone sales and a jump in Mac sales.
Apple's revenue breakdown for the quarter included:
| Segment | Revenue | Notes |
|---|---|---|
| iPhone | US$57.58-billion | Above estimates of US$56.54-billion; included eight days of iPhone 18 Pro sales. |
| Services | US$31.57-billion | In line with analyst estimates of US$31.58-billion. |
| Mac | US$10.79-billion | Above estimates of US$9.61-billion. |
| iPad | US$6.23-billion | Below estimates of US$6.70-billion. |
| Wearables | US$8.30-billion | Below estimates of US$9.06-billion. |
Apple reported gross margins of 47.9 per cent, which was above analyst estimates of 47.5 per cent, according to LSEG data. Profit for the quarter was US$2.10 per share, exceeding analyst estimates of US$1.99 per share, even when excluding 5 cents per share from tariff refunds.
Apple's new foldable flagship, the iPhone Duo, was not available in stores during the fourth quarter, with its launch scheduled for October 23. CEO John Ternus stated that "Duo is constrained as of today" and noted that the company is "not able to predict when supply and demand will be in balance."
Regarding reports of cracked screens on the device, Apple acknowledged the issue last month, stating it affected a small number of devices. In an interview with Reuters, Ternus said that "a very small percentage" of iPhone Duo units had been returned for display issues and that Apple is replacing them.
Apple reported that rising memory-chip costs were partially offset by price increases on iPhone 17 models and some MacBook models, as well as the benefit of carrying inventory. "These price increases provided some offset," Ternus told Reuters.
On the topic of AI, Ternus stated that the company's Siri is now fielding 2.5 billion requests per day, adding, "Now we have the Siri that we always wanted, which we really built from the ground up."
Apple's results reflect a strategic shift in product cadence and a response to rising component costs. While iPhone and Mac sales exceeded expectations, the company faced headwinds from supply constraints for its new foldable device and lower-than-expected sales in the iPad and Wearables categories.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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