Apple reported fiscal fourth-quarter results above Wall Street expectations, supported by strong early demand for its iPhone 18 Pro lineup and price increases that helped offset higher memory-chip costs.
The company posted quarterly revenue of $114.48 billion, exceeding analysts’ estimate of $113.39 billion. Earnings came in at $2.10 per share, above the expected $1.99, even after excluding five cents per share from tariff refunds.
iPhone Sales Lead the Results
Revenue from iPhone sales reached $57.58 billion, surpassing analysts’ expectations of $56.54 billion. Demand for the iPhone 18 Pro range helped drive the performance.
Apple has also changed its usual product-launch schedule. This year, the iPhone Pro models and the new foldable iPhone Duo arrived first, while other models are expected next year. The company is spreading launches across the year to make revenue less dependent on a single autumn release period.
Higher Memory Costs Put Pressure on Margins
Apple’s results came as memory-chip prices continued to rise, driven in part by demand from the artificial intelligence industry. The company said it had taken steps to secure supplies, while higher prices for some iPhone 17 models and MacBooks helped offset part of the cost increase.
Gross margin for the quarter was 47.9%, slightly above analysts’ estimate of 47.5%. However, Apple expects gross margin to fall to between 45% and 46% in the December quarter as memory costs increase.
Mixed Performance Across Other Businesses
Mac revenue reached $10.79 billion, above analysts’ expectations. Services revenue was $31.57 billion, roughly in line with estimates.
Sales of iPads and wearables fell short of forecasts. Revenue in China also missed expectations, coming in at $17.54 billion against an estimated $18.58 billion.
New Products and Supply Constraints
Apple’s new foldable iPhone Duo sold out quickly after launch, but supply remains constrained. The company said a small number of devices had been returned because of display problems and that affected units were being replaced. It could not say when supply would meet demand.
The results mark the first earnings report under CEO John Ternus, who took over in September. While strong iPhone demand helped Apple beat estimates, rising component costs and limited supply remain challenges heading into the holiday quarter.
