Apple beats fourth-quarter estimates on iPhone 18 Pro demand
Higher product prices and strong demand for the iPhone 18 Pro helped the company offset rising memory-chip costs, according to The Economic Times.
Apple reported fiscal fourth-quarter revenue of $114.48 billion on Monday, exceeding the $113.39 billion estimated by Wall Street, according to The Economic Times. Earnings reached $2.10 per share, which was higher than the $1.99 per share expected by analysts, even when excluding a 5-cent-per-share tariff refund benefit.
The company's iPhone revenue, which included the iPhone 18 Pro lineup but excluded iPhone Duo sales, was $57.58 billion. This figure surpassed the $56.54 billion analyst estimate. Mac revenue reached $10.79 billion, exceeding the $9.61 billion expected, while services revenue was $31.57 billion, nearly matching the $31.58 billion forecast.
CEO John Ternus told Reuters that higher memory costs compared to the June quarter were partly offset by inventory benefits, lower costs for certain non-memory components, and price increases. Apple raised prices for iPhone 17 models by $100 and increased prices on some MacBook models alongside the iPhone 18 Pro launch.
Ternus noted that the upgraded Siri assistant is now handling 2.5 billion requests daily. Regarding the iPhone Duo, Ternus said only a very small percentage of units were returned due to display issues and that the company is replacing affected devices. He added that supply remains constrained and Apple cannot yet predict when supply and demand will be balanced.
Other product categories missed expectations, with iPad revenue at $6.23 billion against a $6.70 billion estimate. Wearables, home and accessories generated $8.30 billion, below the expected $9.06 billion. Apple reported a gross margin of 47.9% for the quarter.