Apple revenue hits $114.5 billion in September quarter under new CEO
iPhone sales reached a record high, but rising memory chip costs are expected to impact gross margins in the upcoming holiday quarter.
Apple reported revenue of $114.5 billion for the September quarter, a 12 per cent increase that exceeded the $113.4 billion expected by analysts, according to a Times of India report. This marks the first earnings report for CEO John Ternus, who took over from Tim Cook on September 1.
iPhone revenue rose 17 per cent to $57.58 billion, which was approximately $1 billion above estimates. The company also set September-quarter records for iPhone upgrades in the US, mainland China, and India.
Mac revenue increased 24 per cent to $10.79 billion, driven by the MacBook Neo and MacBook Pro. Apple stated it has never sold more Macs in a single fiscal year, with full-year Mac revenue reaching $37.9 billion.
Despite the growth, Apple expects gross margins for the December quarter to fall to between 45 and 46 per cent from 47.9 per cent. CEO John Ternus described current memory pricing as "unprecedented," and CFO Kevan Parekh noted that memory costs will continue to rise beyond December.
Services revenue reached a record $31.57 billion, up 10 per cent. However, Apple guided services growth for the December quarter at 8 to 9 per cent, which is lower than the 11 per cent expected by analysts.
The company also noted that demand for the Duo foldable is running ahead of supply. COO Sabih Khan stated the Duo is currently constrained and it is difficult to predict when supply and demand will balance.