Apple’s net profit jumped 10.7 per cent on an annual basis in its 2023 fiscal fourth quarter, despite a yearly drop in total sales.
The Cupertino-based company’s net profit in the period that ended on September 30 surged to more than $22.95 billion. It was 15.6 per cent up on a quarterly basis.
The profit was driven by a surge in iPhone sales and services business.
However, revenue of the company dropped almost 1 per cent on an annual basis to nearly $89.49 billion during the quarter, exceeding analysts’ estimates of $89.28 billion. This was the company's fourth consecutive quarter that saw a yearly decline in sales.
“Apple delivered an underwhelming quarter, despite a slight beat on iPhone sales and another strong performance in its services business,” Jesse Cohen, senior analyst at Investing.com, told The National.
“Investors were left wanting more from Apple, which is held to a higher standard than every other tech company … disappointing quarter proves it’s not immune to the challenges facing the tech industry at large.”
Apple did not issue official guidance about future revenue and profits. The company stopped offering guidance at the start of the Covid-19 pandemic because of uncertainty in business.
“We now have our strongest line-up of products ever heading into the holiday season, including the iPhone 15 line-up and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030,” said Tim Cook, Apple’s chief executive.
The company’s diluted earnings per share surged 13.1 per cent year-on-year to $1.46, exceeding estimates of $1.39.
The company’s stock, which has surged almost 42 per cent since the start of the year, was trading 0.72 per cent less at $176.30 a share in after-market hours on Thursday.
Apple’s market value topped $3 trillion in June, anchoring its position as the world's most valuable company. It stood at $2.78 trillion at market close on Thursday.
iPhone sales account for about 49 per cent of the company's total revenue.
Smartphone sales surged nearly 2.7 per cent to more than $43.80 billion in the quarter from the prior year period, missing analyst estimates of $43.81 billion.
The company’s total revenue from its services division grew about 16.3 per cent annually to more than $22.31 billion, while revenue from wearables, home and accessories products dropped 3.4 per cent annually to more than $9.32 billion.
Revenue from iPads and computers dropped almost 25 per cent to more than $14 billion.
Apple’s sales in the Americas region accounted for more than 44 per cent of the company's total fourth-quarter revenue, with more than $40.11 billion.
It was followed by Europe and the Greater China market (China, Hong Kong and Taiwan), which added $22.46 billion and $15.08 billion, respectively, to the company’s revenue.
Japan and the rest of the Asia Pacific market added more than $11.83 billion to Apple’s fourth-quarter sales, an annual drop of 2 per cent.
“Apple’s worrying China sales figures indicate demand for its high-end iPhones is slowing more than expected in the face of rising competition from local companies, including Huawei,” Mr Cohen said.
“The big question is if this is just a blip, or signs of a bigger shift among consumers as rising interest rates and a weaker economic backdrop discourage consumers from making pricey purchases.”
Apple’s cash and cash equivalents surged 26.7 per cent annually to $29.96 billion as of September 30. The company also returned more than $25 billion to its shareholders during the quarter.
“During the September quarter, our business performance drove double digit EPS [earnings per share] growth … while [we] continuing to invest in our long-term growth plans,” said Luca Maestri, Apple’s chief financial officer.
“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments.”
Mr Maestri said that Apple is expecting its December quarter revenue to be similar to the same quarter last year but he did not share any specific numbers.
Apple said its board of directors had declared a cash dividend, payable on November 16, of $0.24 for each share of the company’s common stock.
Earlier this week, Apple unveiled a host of new products, including a new iMac and the latest in the MacBook Pro line-up, at a live-streamed event.
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UAE and Russia in numbers
UAE-Russia ties stretch back 48 years
Trade between the UAE and Russia reached Dh12.5 bn in 2018
More than 3,000 Russian companies are registered in the UAE
Around 40,000 Russians live in the UAE
The number of Russian tourists travelling to the UAE will increase to 12 percent to reach 1.6 million in 2023
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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UAE currency: the story behind the money in your pockets
Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
How to donate
Text the following numbers:
2289 - Dh10
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*numbers work for both Etisalat and du
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young