Apple Reports 6 Percent Increase in Revenue as iPhone Sales Jump

By: Epoch Times - Tech Posted On: November 01, 2024 View: 3

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Apple’s profits jumped year on year but were impacted by a $10 billion tax bill.

Apple recorded revenue of $94.9 billion for the fourth quarter ended in September, up 6 percent year over year, partly fueled by a strong initial demand for its iPhone 16.

Those numbers would have been even higher were it not for a one-time tax bill stemming from a long-contested decision by the European Union (EU).

Apple CEO Tim Cook said during Thursday’s earnings call that iPhone sales jumped 6 percent from the previous year, totaling $46.22 billion in the fourth quarter of this year.

The company reported $43.8 billion in iPhone sales in the same period last year, according to Apple’s fiscal quarterly report released on Thursday.

Revenue from Apple’s Mac business also rose 2 percent to $7.74 billion, while iPad sales reached $6.95 billion, up 8 percent from the previous year, the company stated.

“During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection,” Cook said in a press release.

Apple CFO Luca Maestri said that product revenue reached $70 billion, marking a 4 percent year-over-year increase, driven by growth in iPhone, iPad, and Mac sales.

Maestri said that revenue from Apple’s services—such as iCloud, Apple TV, and Apple Pay—hit an all-time high of nearly $25 billion in the fourth quarter, up 12 percent year over year.

“Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders,” he stated.

Apple recorded a one-time income tax charge of $10.2 billion in the fourth quarter related to a European General Court ruling requiring the company to pay more than $14 billion in back taxes to Ireland.

“When we exclude this one-time charge, net income was $25 billion and diluted earning per share was $1.64, up 12 percent year over year in the September quarter record,” Maestri said during the call.

The case stems from a 2016 decision made by the European Commission that ordered Apple to pay Ireland €13 billion ($14.4 billion) in unpaid taxes. The commission found that Ireland’s tax break offers to Apple, where the company’s EU headquarters is located, were illegal. The tech giant had contested the decision.

Apple’s sales in China were down year over year, to $15.03 billion. Apple’s stock was down about 2 percent in after-hours trading after the analyst call.

Reuters and Jack Phillips contributed to this report.

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