Strong services revenue lifted Apple profits despite lower iPhone sales
Apple earnings in the fiscal fourth quarter beat expectations AFP

Apple posted quarterly revenue and profit that surpassed analysts' estimates after revenue from services and iPhones compensated for the drop in Mac sales.

Net revenue for the fourth fiscal quarter fell 0.7% from a year earlier to $89.5 billion, the company said in a statement Thursday. Profit rose 11% to $23 billion or $1.46 per share. It was the fourth consecutive quarter with a drop in sales.

Analysts expected revenue of $89.28 billion and per share profit of $1.39, CNBC reported, citing LSEG data.

Sales of the iPhone increased 2.8% to $43.8 billion. Service revenue jumped 16%. Both came in above estimates.

On the negative side, Mac sales sank 34% to $7.61 billion, missing analysts' expectations of $8.63 billion. The company had warned in August that Mac revenue was expected to decline by double-digit percentages.

Apple shares fell in extended trading after the earnings were released.

The quarter included the initial sales of the new iPhone 15.

"Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services," Chief Executive Officer Tim Cook said in the earnings statement.

"We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030."

Apple is the most-valuable U.S. company, with a market capitalization of about $2.8 trillion.

Apple inc.