Apple shares fall 4 per cent despite revenue beat under new CEO
The technology company reported $114.5 billion in revenue for the fiscal fourth quarter, but issued a cautious outlook for the next period.
Apple Inc. shares fell 4 per cent in Tuesday's trade on November 3, dropping to $325 apiece, according to Mint. The decline occurred despite the company reporting $114.5 billion in revenue for the fiscal fourth quarter ended September 26, a 12 per cent increase from the previous year.
The results represent the first quarterly report under new Chief Executive Officer John Ternus, who took charge on September 1. While revenue beat the average analyst projection of $113.5 billion, the company's outlook for the December quarter weighed on investors.
iPhone revenue reached $57.6 billion, exceeding the $56.54 billion estimated by LSEG. Mac revenue rose 24 per cent to $10.8 billion, significantly higher than the $9.7 billion average projection. However, iPad revenue of $6.23 billion fell below the $6.70 billion expected, according to the New York Post.
Apple guided its December-quarter gross margin to between 45 per cent and 46 per cent, which is below the 46.3 per cent average estimate. The company also expects services growth to be between 8 per cent and 9 per cent, signaling a slowdown from previous levels.
CEO John Ternus stated that the company is closing the year with its most ambitious lineup, including the iPhone Duo, iPhone 18 Pro, and iPhone 18 Pro Max. He noted that he could not predict when the company would reach enough Duo supply to meet demand.