Apple reports better than anticipated Q4 revenue. EPS hurt by EU tax payment
11/01/2024 03:38
Apple reported its Q4 earnings after the bell on Thursday.
Apple (AAPL) announced its fourth quarter earnings on Thursday giving Wall Street its first look at whether the company’s Apple Intelligence platform is juicing iPhone sales or not.
For the quarter, Apple saw earnings per share (EPS) of $0.97 on revenue of $94.9 billion. The company says it saw a one-time charge related to the reversal of a European General Court decision that requires Apple to pay 13 billion euros to Ireland for back taxes. Shares fell about 2% following the report.
Without the charge, EPS would have come in at $1.64. That would have blown past expectations of $1.59 per share and revenue of $94.3 billion.
The reported EPS of $1.46 on revenue of $89.4 billion during the same period last year.
Apple’s iPhone sales for the quarter topped out at $46.2 billion, better than the $45 billion analysts were anticipating. The company’s Services business brought in revenue of $24.9 billion, short of expectations of $25.2 billion.
Apple's iPad revenue, meanwhile, topped $6.9 billion, roughly in line with expectations of $7 billion, while Wearables came in at $9 billion versus expectations of $9.1 billion.
Greater China revenue was $15 billion, shy of the $15.8 billion Wall Street was looking for.
Apple Intelligence is currently only available in US English, but the company says it will add localized English support in December and additional languages in April.
The software is also only compatible with the iPhone 15 Pro and iPhone 15 Pro Max, as well as the iPhone 16 and iPhone 16 Pro lines, which means users with older phones will need to upgrade to access the platform. And the hope, at least for Apple and its investors, is that the move will help spark a new iPhone sales supercycle.
Apple's first set of Apple Intelligence capabilities is relatively tame, with notification summaries serving as the lone standout. But the next Apple Intelligence update will include ChatGPT integration and the debut of Apple’s Visual Intelligence, which could drive more interest in the company’s latest and greatest devices.
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