Apple has announced record revenue for its fourth quarter of 2024, posting an impressive $94.9 billion, a 6% increase from the $89.5 billion reported in the same quarter last year. Earnings per share (EPS) climbed to $1.64, up from $1.46 year-over-year, surpassing analysts’ expectations of $94 billion in revenue and $1.60 in EPS. This strong performance was bolstered by the recent launch of the iPhone 16 lineup, the Apple Watch Series 10, and a substantial boost in services revenue, which reached $24.9 billion.
However, Apple’s stellar numbers come amid concerns regarding the new iPhone’s demand. Following its September 20 release, iPhone sales contributed $46.2 billion to the revenue, a significant increase from $43.8 billion the previous year. Despite this, some reports indicate Apple has scaled back production due to lower-than-expected demand, raising questions about the sustainability of future sales amid intense competition and a shift towards AI technologies.
Industry experts, like Wedbush’s Daniel Ives, remain optimistic, stating, “[Apple’s quarter was better than feared,]” while emphasizing the continued strength of the iPhone upgrade cycle and the promising prospects of AI features set to enhance user experience. Conversely, analysts from KeyBanc express caution, noting potential headwinds in the coming quarters and a possible slowdown in revenue growth, forecasting only low-to-mid single-digit increases instead of higher projections.
Amidst these developments, Apple’s competitive landscape is shifting. Rivals like Samsung and Google are intensifying their focus on AI, which could pose challenges for Apple’s market dominance. Additionally, regulatory scrutiny remains a looming concern as the tech giant navigates its extensive services and app store practices.
Apple’s robust Q4 earnings reflect a blend of impressive product launches and growing services revenue, yet the trajectory of its future growth may hinge on addressing declining demand for the iPhone 16 and successfully integrating AI into its ecosystem. As the holiday season approaches, all eyes will be on how Apple adapts to these challenges while capitalizing on its technological innovations.
