Strong iPhone Sales Drive Apple’s Q4 Earnings, China Market Declines

[iNews24 Yongsam Kwon] In last year’s last quarter, Apple beat market estimates, ending a five-quarter run of negative growth. However, the “iPhone ban” and other reasons caused its sales in China, a crucial market, to drop dramatically.

Apple announced on the 1st (local time) that it recorded $119.58 billion in sales and $2.18 in net income per share for last year’s fourth quarter (first quarter of the fiscal year). This exceeds market expectations. Previously, financial information company LSEG (formerly Refinitiv) had forecasted Apple’s fourth-quarter earnings consensus (average market outlook) to be $117.91 billion in sales revenue and $2.10 in net income per share.

In particular, sales increased by 2% compared to last year’s period, reversing the negative growth (sales decrease) trend that had continued over the fourth quarter of 2022. iPhone sales recorded $69.77 billion, a 6% increase compared to last year. This reflects the impact of the iPhone 15 series launched in September last year.

Despite this rebound in sales, sales in China, a key market, plummeted by 13% compared to the same period last year. This is because the US-China trade conflict has led to a rise in “patriotic consumption” of goods from Chinese manufacturers like Huawei. Last year, the Chinese government issued an “iPhone ban,” banning the use of iPhones by public servants and authorities.

Meanwhile, Mac sales recorded $7.7 billion, growing at a predicted rate of less than 1%. iPad sales continued to struggle, recording $7.02 billion, a 25% decrease over the same period last year.

Sales of wearable (other) devices such as AirPods and Apple Watch recorded $11.95 billion, a decrease of 11% over the same period last year. This is due to the suspension of the latest Apple Watch sales in the US in December last year due to a patent dispute with medical device company Masimo. The services business sector recorded $23.117 billion in sales, an increase of 11% over the same period last year.

Meanwhile, Apple’s stock price, which rose 1.3% in the regular session of the New York Stock Exchange on the day, fell 1.5% in after-hours trading following the earnings announcement. “I am pleased that iPhone sales have grown by 6% (compared to last year),” Tim Cook, CEO of Apple, said. “Excluding China, we saw double-digit growth in emerging markets, and the iPhones are selling well in other regional markets.”