• Apple posts modest Q4 revenue and earnings beat, with Services revenue hitting $28.75 billion.
  • Greater China sales disappoint at $14.49 billion, attributed to iPhone Air launch delays.
  • Company guides for robust 10-12% Q1 revenue growth, projecting double-digit iPhone sales increase despite supply constraints.

Apple Inc. delivered fourth-quarter results that edged past Wall Street expectations, though weakness in its critical China market highlighted ongoing regional challenges. The consumer electronics giant reported revenue of $102.47 billion against estimates of $102.24 billion, with earnings per share reaching $1.85 compared to the projected $1.77.

The company's product segmentation showed iPhone revenue at $49.03 billion, with Mac bringing in $8.73 billion and iPad contributing $6.95 billion. The Services division continued its strong performance at $28.75 billion, while Wearables revenue reached $9.01 billion.

What caught analysts' attention was the significant miss in Greater China, where revenue came in at $14.49 billion versus the $16.24 billion estimate. According to people familiar with the matter, the shortfall was primarily driven by delayed availability of the new iPhone Air in the region, compounding existing competitive pressures from domestic smartphone manufacturers.

Despite these regional headwinds, Apple's forward guidance surprised to the upside. The company projected first-quarter revenue growth of 10-12% year-over-year, significantly above the 6.6% consensus estimate. Management specifically called out expectations for double-digit iPhone sales growth, surpassing the 9.8% analyst projection.

"We expect holiday iPhone sales to outperform current forecasts," CEO Tim Cook stated during the earnings call, striking an optimistic tone about consumer demand for the latest models. This confidence comes even as the company acknowledged ongoing supply constraints affecting some iPhone 16 and 17 models, reflecting persistent challenges in the global semiconductor supply chain.

The board declared a quarterly dividend of $0.26 per share, maintaining Apple's consistent return of capital to shareholders. When reached for additional comment on the China performance, Apple representatives pointed to Cook's earlier statements about expecting improved conditions following the iPhone Air's eventual launch in the region.

Efforts to secure additional manufacturing capacity for the constrained iPhone models are ongoing, according to people familiar with the supply chain discussions. Without improved production rates, the company could face challenges meeting the strong demand projected for the critical holiday quarter.

Correction: An earlier version of this article misstated the Services revenue figure. It was $28.75 billion, not $27.85 billion.