Apple posts record quarterly profit of $42.1 billion as iPhone sales surge in Greater China, with services revenue also reaching a new high.
SAN FRANCISCO: Apple reported record-high earnings for the final quarter of last year, driven by unprecedented iPhone demand.
The tech giant announced a profit of $42.1 billion on revenue of $143.8 billion for the recently-ended period.
Chief executive Tim Cook said the iPhone had its best-ever quarter, with sales climbing globally.
In the crucial Greater China market, iPhone revenue surged to $25.5 billion, up from $18.5 billion a year earlier.
Overall, iPhone sales brought in $85.2 billion for the quarter.
Apple’s services revenue, including digital content and subscriptions, also hit a new quarterly high of $30 billion.
Cook noted this represented a 14% jump from the same period a year earlier.
The company reported the number of Apple devices in use worldwide has now topped 2.5 billion.
Shares in the iPhone maker rose slightly more than 1% in after-market trading following the announcement.
Emarketer analyst Jacob Bourne said the stellar earnings validate Apple’s strategy in a shifting industry.
He added the results reinforce Apple’s position atop the global smartphone market.
“Yet maintaining that dominance is perhaps more uncertain than ever,” Bourne cautioned.
He said it hinges on correct pricing calls and developing next-generation devices like wearables and a foldable iPhone.
Bourne stated all eyes will be on Apple’s freshly announced AI partnership with Google.
The collaboration will see Google’s Gemini technology power Apple’s next-generation AI features, including Siri.
This marks a significant shift for Apple, which has traditionally developed core technologies in-house.
Cook confirmed Apple will release a more personalised Siri digital assistant using the Google-provided technology.
The company has faced pressure to show it is not being left behind in the AI race.
Apple is largely perceived to have stumbled in efforts to roll out AI capabilities across its products.
In December, it announced the head of its artificial intelligence team was stepping down.
The earnings figures emerged amid speculation about a successor to Cook being groomed internally.
Head of hardware engineering John Ternus is considered a top contender for the chief executive job.
