Apple results beat Wall Street expectations on strong iPhone sales

Apple's fourth-quarter results on November 2nd exceeded Wall Street expectations, fueled by strong iPhone 18 Pro sales and price increases that helped offset rising memory-chip costs. Fiscal fourth-quarter sales reached $114.48 billion, surpassing analyst estimates of $113.39 billion. Profit for the quarter amounted to $2.10 per share, surpassing estimates of $1.99 per share, even when excluding 5 cents per share from tariff refunds.

Shares of Apple were down slightly after-hours. The company's shift towards spaced iPhone launches under CEO John Ternus has led to a more consistent revenue cycle. Apple also introduced new non-iPhone products, including touchscreen laptops and a smart-home hub. However, the iPhone Duo, Apple's first foldable phone, faced supply constraints, with CEO Ternus stating that a small percentage of units have been returned due to display issues.

Despite this, iPhone sales for the quarter were $57.58 billion, exceeding estimates. Gross margins improved to 47.9%, above the 47.5% estimate. Services revenue remained in line with expectations at $31.57 billion.