The company released new iPhones in September, and upgraded iPads and Macs were introduced earlier this week. Apple raised prices on most of the devices, a relatively recent strategy to offset slowing unit sales growth. It’s a bet that consumers will continue to pay up for access to the company’s specialized and tightly integrated hardware and software.
The iPhone XR is one of the few outliers from the trend of more costly Apple gadgets. With a starting price of $749, it’s expected to be a popular holiday gift, luring owners of older iPhones to upgrade. The iPhone still looms large over Apple’s fortunes, accounting for more than 60 percent of revenues. It’s also the central hub for connecting the other devices and using services.
Apple’s Services business reported a 17 percent increase in revenue to $9.98 billion. Analysts expected $10.18 billion. Apple hasn’t launched any notable new offerings lately in this category, which includes iCloud and Apple Music subscriptions, app downloads, and iTunes video purchases. The company is working on digital newspaper subscriptions and original video content for next year.
Fiscal fourth-quarter sales rose 20 percent to $62.9 billion, Apple said. Profit came in at $2.91 a share. Analysts expected revenue of $61.4 billion and earnings of $2.78 a share.
Before Thursday, Apple shares had withstood a recent tech stock rout. Amazon.com Inc. and Netflix Inc. tumbled about 20 percent each last month as the sector was pummeled by rising interest rates and concern over the economic outlook and tariffs. Apple’s resilience was all the more impressive considering the company is exposed to China at a time of escalating trade tension with the U.S.
Sales in Greater China came in at $11.4 billion in the quarter, up 16 percent from a year earlier.
The Other Products category saw revenue jump 31 percent to $4.2 billion in revenue, likely on demand for Apple’s Watch.
Mac unit sales surged 42 percent from the previous quarter. That’s a nice jump for a category that saw its lowest sales numbers since 2010 in the third quarter. Apple launched the new MacBook Pros in July. IPad revenue fell 15 percent to $4.09 billion from a year earlier.