Apple beats estimates thanks to iPhone and services, but records fourth consecutive quarterly sales decline


In this article

Apple CEO Tim Cook holds a new iPhone 15 Pro during the Wonderlust project launch event at the company’s headquarters in Cupertino, California, Sept. 12, 2023.
Loren Elliott | Reuters

Apple will report fourth-quarter earnings after the bell on Thursday.

Analysts expect Apple to report its fourth straight quarter of overall revenue decline, but many hope that CFO Luca Maestri will signal a return to growth on the earnings call.

The quarter will include about a week or so of iPhone 15 sales. Investors are closely watching to see if the latest iPhone models are selling well, and, if so, it would suggest a strong product “cycle” over the next year.

Apple’s fiscal fourth quarter period typically includes a little bit of back-to-school laptop and tablet spending that benefits its Mac and iPad divisions. But Apple warned in August that it expected Mac and iPad revenue to decline by “double digit” percentages during the quarter.

Investors will also want to hear about how demand is faring in China, after a quarter with renewed competition for consumers from Huawei, as well as reports of new government regulations that could restrict Apple device usage among government officials.

Here’s what Wall Street expects, per LSEG (formerly Refinitiv) consensus estimates:

  • EPS: $1.39 estimated
  • Revenue: $89.28 billion estimated
  • iPhone revenue: $43.81 billion estimated
  • Mac revenue: $8.63 billion estimated
  • iPad revenue: $6.07 billion estimated
  • Other Products revenue: $9.43 billion estimated
  • Services revenue: $21.35 billion estimated
  • Gross margin: 44.5% estimated

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