Apple Inc. on Thursday announced its financial results for the fourth fiscal quarter and provided an outlook for the upcoming holiday sales period. During a call with investors, company executives reported continued strong demand for new iPhone models but noted that supply constraints for its highest-end devices would impact its first-quarter revenue.
For its fourth quarter, which ended Sept. 30, Apple posted total revenue of $89.5 billion, a slight decrease from the $90.1 billion reported in the same quarter of the previous year. This marked the fourth consecutive quarter the company has reported a year-over-year revenue decline. Quarterly net income was $23 billion.
Revenue from the iPhone, the company’s largest product category, was $43.81 billion for the quarter. The services division, which includes the App Store, Apple Music, and iCloud, generated a record $22.31 billion in revenue, an increase of 16% year-over-year.
Other product categories saw varied results. Mac revenue was $7.61 billion, a 34% decrease compared to the prior year. Revenue from the wearables, home, and accessories category, which includes the Apple Watch and AirPods, was $9.32 billion.
Looking ahead to the critical holiday shopping season, Apple’s Chief Financial Officer Luca Maestri said the company expects total revenue for the December quarter to be “similar to last year.” Apple reported $117.2 billion in revenue during the first fiscal quarter of 2023.
Chief Executive Tim Cook addressed the performance of the new iPhone 15 lineup, which was released late in the fourth quarter. He stated that demand for the Pro and Pro Max models is outpacing the company’s ability to produce them.
“We are working hard to get more products to our customers who have ordered them,” Cook said on the investor call, referring to the supply challenges for the iPhone 15 Pro and iPhone 15 Pro Max. He added that the supply constraints are expected to continue through the current quarter.
Following the release of the report and the executive guidance, Apple’s stock price declined in after-hours trading. The company did not provide a formal, specific revenue forecast for the first quarter, a practice it stopped during the COVID-19 pandemic.
