Apple posts earnings beat, but iPhone sales disappoint

Apple was the latest big tech name to join the march of disappointments late on Thursday, after coming in short of forecasts on sales of its flagship iPhone range.

The California-based consumer technology giant reported fourth-quarter revenue of $90.1bn in its after-hours earnings release - above consensus expectations for $88.7bn, and up from $83.4bn year-on-year.

Looking at the bottom line, Apple reported net income of $20.7bn, or $1.29 per share, which was ahead of market consensus for $1.27 and up from $1.24 a year ago.

It put much of the growth down to its Mac computers, which were well ahead of forecasts given the back-to-school nature of the quarter.

Sales of its iPhones, however, came in below market consensus, with Apple reporting $42.6bn in sales in the period.

That was up from $38.9bn year-on-year, but was below the $43bn in iPhone sales analysts had been hoping for.

“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” said chief executive officer Tim Cook.

“As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make.

“We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.”

The board declared a dividend of 23 US cents per common share, to be paid on 10 November to shareholders of record at the end of business on 7 November.

Shares in Apple closed down 3.05% on Nasdaq at $144.80, and were last down another 1.04% in after-hours trading.

Reporting by Josh White for Sharecast.com.