Apple revenue beats expectations as iPhone and Mac sales offset weaker China performance - Economy and business

Apple reported quarterly revenue of $114.5 billion, above Wall Street forecasts, with iPhone and Mac sales stronger than expected. Revenue in China rose about 20% but fell short of estimates, which the company attributed to supply constraints.

Apple reported revenue of $114.5 billion for the quarter ended in September, exceeding Wall Street’s estimate of $113.4 billion. The results marked the first quarterly report since John Ternus took over as chief executive in September.

IPhone revenue rose 17.6% year over year to $57.6 billion, modestly beating analyst forecasts and Apple’s previous outlook for growth in the mid-teens. Mac sales also topped expectations, reaching $10.8 billion—about $1 billion more than Wall Street had projected.

Sales in China increased by roughly 20% to $17.5 billion, but came in below estimates of $18.9 billion. Apple finance chief Kevan Parekh said supply-chain constraints limited the company’s ability to deliver enough products to meet demand in the country.

The quarter was the first to fully reflect Apple’s decision to raise prices across its device lineup at the end of June, citing a sharp increase in memory-chip costs. The company’s gross margin was 47.9%, within its previous forecast range of 47% to 48%. Net income totaled $30.7 billion, while services revenue—including the App Store, Apple Pay and iCloud—reached $31.6 billion.

Investors are looking for Apple’s outlook for the holiday season, which the company typically discusses on a call with analysts after releasing its results. Higher prices and reported delivery delays and screen cracks affecting the foldable iPhone Duo are among the challenges facing the company. Apple has said the screen issue affected only a limited number of devices.

Component shortages have also affected the wider smartphone market. Counterpoint Research data cited in the report showed global smartphone shipments falling 20% in the third quarter. Apple delayed iPhone price increases until September and increased its market share from 18% to 22% during the quarter, even as the overall market contracted.

The iPhone 18 Pro and Pro Max, introduced in September, were priced about $100 above the previous year’s models. Apple also postponed the launch of the cheaper base model until next year, making year-over-year comparisons and forecasts for holiday sales more difficult. Parekh said it was difficult to determine how much of the stronger iPhone growth reflected customers bringing purchases forward ahead of expected price rises.

Sources: Folha Mercado.