Apple posted stronger-than-expected fourth-quarter results on Thursday night, easing investor concerns about slowing demand in China and reaffirming its dominance in the global smartphone market. The company’s revenue for the quarter reached $102.5 billion, surpassing analyst forecasts of $102.2 billion, while net income surged 86 percent year-on-year to $27.5 billion, ahead of projections of $26.3 billion.
The results came despite a decline in Chinese sales, which fell 3.6 percent to $14.5 billion—well below analyst expectations of $16.2 billion. The dip highlighted ongoing challenges in the world’s second-largest economy, where Apple faces fierce competition from local rivals such as Huawei. Still, investors reacted positively, sending Apple’s shares up 4.4 percent in after-hours trading to $283.26, giving the company a market capitalization of $4.02 trillion.
Apple’s iPhone 17 line-up, launched in September, has driven much of the renewed optimism. The devices have seen strong demand across key markets thanks to sharper displays, greater storage, and an upgraded processor. Chief executive Tim Cook acknowledged that Apple had struggled to keep up with demand for certain models, including the new iPhone Air, which faced launch delays in China. The iPhone Air, Apple’s thinnest and most significant design overhaul in years, has been touted as a potential game-changer in the premium smartphone segment.
Cook forecast that iPhone sales would grow by double digits in the current, holiday-driven quarter, with overall company revenue expected to rise between 10 and 12 percent year-on-year. Those projections outpaced Wall Street’s expectations, which had estimated iPhone sales growth of 9.8 percent and total revenue growth of 6.6 percent, according to data from LSEG.
Apple’s market value surpassed $4 trillion earlier in the week, joining Nvidia and Microsoft as the only U.S. companies to reach the milestone. The achievement was bolstered by robust iPhone sales, which climbed 6 percent to $49 billion in the quarter and accounted for more than half of Apple’s total revenue over the past year. Analysts said the sleek new iPhone Air could help Apple fend off competition from Samsung Electronics and other Android manufacturers, with data from Counterpoint Research showing early iPhone 17 sales outperforming the previous generation by 14 percent in both the U.S. and China.
The company’s shares had faced headwinds earlier this year amid concerns over trade tensions, high U.S. tariffs, and slowing Chinese demand. However, since August, Apple’s stock price has climbed more than 30 percent, reflecting renewed investor confidence. Analysts credited the company’s ability to sustain strong hardware demand even as it lags in the generative artificial intelligence race.
Apple’s delayed rollout of its “Apple Intelligence” suite—including an upgraded Siri and integration with ChatGPT—has drawn scrutiny from industry observers. Still, investors appear to be betting that the company’s cautious approach could pay off once its AI ecosystem matures.
In contrast, rival Meta Platforms faced its steepest single-day drop in three years, with shares tumbling 11.3 percent to $666.47. The Facebook and Instagram parent announced plans to raise up to $30 billion through a multi-part bond sale to fund soaring AI development costs—a reminder of the mounting financial pressure across the tech industry as companies race to dominate the next wave of innovation.
