Apple Inc. has reported stronger-than-expected revenue for its fiscal fourth quarter, marking a positive start for new CEO John Ternus, who took over in September. The company earned $30.71 billion, or $2.10 per share, in the July-September period, a 12% increase from the same period last year. Total revenue rose 12% to $114.5 billion, surpassing analyst expectations of $113.4 billion. The results stand out against a backdrop of disappointing earnings from other tech giants like Alphabet, Amazon, and Intel.
Apple's revenue growth was partly driven by price hikes due to a global memory chip shortage linked to the artificial intelligence boom. The iPhone 18, Macs, and iPads all saw price increases in June. Despite these higher prices, Apple's earnings included a 5 cents per share boost from tariff refunds. Analysts noted that Apple's cautious approach to AI spending has helped preserve its cash flow, unlike its peers who are facing investor uncertainty over massive AI investments.
The company's new iPhone Duo, its first foldable phone priced at $1,999, was not yet on sale during the quarter but has seen strong demand. However, some users have reported issues like cracked screens, which Apple is addressing. Supply constraints have pushed the earliest shipping dates for the Duo to January. Apple's shares remained flat in after-hours trading, following a 1.8% drop to $338.32 in regular trading.