Apple Earnings: iPhone Sales and Services Remain the Main Revenue Drivers, by Far

Apple's (AAPL) Q4 revenue grew 6.1%, accelerating from previous quarters, driven by strong service growth and the new AI-powered iPhone 16 with the A18 chip. For the period ended September 28, Apple earned an adjusted $1.64 per share ($0.97 on a GAAP basis) and revenue grew 6.1% YoY to $94.93 billion.

That number included $46.22 billion delivered from iPhone sales, $6.95 billion from iPad sales, and $24.97 billion from basic services, which was, nevertheless, lower than consensus estimate of $25.27 billion. On October 28, Apple announced Apple Intelligence for iPhone, iPad, and Mac, a personal AI app that helped users refine texts and aggregate notifications, emails, messages, and third-party apps. In addition, Apple has made improvements to Siri to make it more natural, flexible, and more deeply integrated into iOS.

Apple also recently updated its capital return program and expanded its buyback program by $110 billion. All in all, Apple remains a decent stock to retain in investors’ portfolios, however, a protracted lack of any breakthrough functionalities puts the Cupertino, CA’s company at risk of gradually cooling sales looking forward.