Tech giant Apple has delivered exceptional fourth quarter results, with record-breaking sales of £94.9 billion, outperforming Wall Street’s projected figures. The impressive performance was primarily driven by robust iPhone demand, though profits took a significant hit from an EU tax ruling.
The world’s most valuable publicly traded company, currently valued at £3.5 trillion, saw iPhone sales climb 5.5 per cent year-on-year to £46.2 billion, representing approximately half of the company’s overall revenue. However, net income declined by 36 per cent to £14.7 billion after absorbing a one-time income tax charge of £10.2 billion related to the European Union’s ruling on Irish tax matters.
The company’s services division, encompassing the App Store, Apple Music, and Apple TV, achieved record revenues of £24.97 billion, marking an 11.9 per cent increase. iPad sales grew by 7.9 per cent to £6.95 billion, while MacBook revenue rose 1.7 per cent to £7.7 billion. The only regional decline was noted in China, where sales dipped 0.3 per cent below market expectations.
Tim Cook, Apple’s chief executive, highlighted the company’s advancement in AI technology, introducing Apple Intelligence features through software updates. These developments include an enhanced Siri voice assistant and text proof-reading capabilities, with additional features planned for release in coming months.
Market response remained cautious, with Apple shares declining 1.1 per cent to £223.48 in after-hours trading. The broader tech sector experienced significant selling pressure, with the Nasdaq Composite index dropping 2.8 per cent on Thursday and recording a 0.5 per cent monthly decline.
Industry analysts maintain optimism about Apple’s AI initiatives, suggesting these developments could drive future device sales. The company’s recent launch of new MacBook Pro models, featuring enhanced processors for creative professionals, demonstrates its commitment to innovation and market leadership.
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