Apple beats forecasts on iPhone and services strength, but China slump caps upside
Apple posted stronger-than-expected fourth-quarter earnings, driven by robust iPhone and services revenue, though softer sales in China and slightly higher costs muted the overall picture.
- The tech giant reported earnings per share of $1.85, above estimates of $1.77,
- on revenue of $102.47 billion, narrowly topping forecasts of $102.19 billion.
- iPhone sales climbed 6.1% year-on-year to $49.03 billion, powering overall product growth.
- Services revenue rose to $28.75 billion (vs. $28.18 billion est.), continuing its steady expansion as Apple’s high-margin growth engine.
Other segments also delivered small beats:
- Mac revenue $8.73 billion,
- iPad $6.95 billion,
- and Wearables, Home & Accessories $9.01 billion,
each roughly in line or better than expectations.
The regional breakdown was less flattering:
- Greater China revenue slumped to $14.49 billion, missing expectations of $16.43 billion, underscoring persistent competitive pressures and uneven demand.
- Americas sales were steady at $44.19 billion, just shy of forecasts.
Operating expenses rose slightly to $15.91 billion (vs. $15.75 billion est.), trimming margins but leaving overall profitability intact.
Apple’s latest results highlight the resilience of its core iPhone and services businesses even as regional headwinds linger, setting a measured tone heading into 2026.
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Outlook:
CEO Tim Cook said he expects double-digit year-on-year growth in iPhone sales in the first quarter, supported by continued demand for premium models. He also forecast overall revenue growth of 10–12% year-on-year, signalling confidence that Apple’s momentum will carry into the key holiday period.
