Though sales of iPhones and services were softer than expected last quarter, Apple’s revenue and profit both topped analysts’ estimates. Even with growth expected to decelerate during the current period, investors found enough optimism to send the shares on their biggest one-day rally since July 2020.
The iPhone, Apple’s flagship device, generated about $42.6 billion in the fourth quarter, which ended Sept. 24, the company said. Analysts had estimated nearly $42.7 billion. Services, such as music and video streaming, brought in $19.2 billion. That was well short of the almost $20 billion projection.
Apple’s overall revenue grew 8.1% to about $90.1 billion in the fiscal fourth quarter. That beat the $88.6 billion estimate, because of better-than-expected growth in its Mac and wearables businesses. Earnings of $1.29 a share topped the average projection of $1.26. The company’s services business includes its Music and TV+ streaming platforms, as well as the Apple Card, iCloud storage and other digital offerings. It’s seen as one of Apple’s key sales drivers, especially as the company expands into new types of services.
Apple launched a new iPad Air earlier this year, but it didn’t come out with a new iPad Pro or entry-level model until the current quarter.