Apple Reports Revenue Growth Under New Chief Amid Rising Component Costs

Apple reported fiscal fourth-quarter revenue of $114.5 billion on Monday during the first earnings report delivered by new Chief Executive John Ternus, who took over the role in September.

The company posted net profit and revenue that topped Wall Street expectations, driven by strong iPhone sales, even as it missed analyst projections for iPad revenue and sales in China.

The performance offers the first concrete look at Apple's financial health following a widespread surge in component prices and a series of major product rollouts under executive leadership.

“What we’re seeing with memory pricing right now is unprecedented,” said John Ternus, the chief executive, speaking to analysts on the call.

Apple reported a gross margin of 47.9 percent for the September quarter, while forecasting a margin of 45 percent to 46 percent for the current December quarter.

Revenue from iPhones reached $57.58 billion, topping analyst estimates, while iPad sales dropped to $6.23 billion amid supply constraints.

China revenue came in at $17.54 billion, falling short of Wall Street estimates.

The company's services business grew to $31.57 billion, which was largely in line with expectations.

Inventory surged to $14.54 billion as the company stockpiled memory chips and other computer components.

Ternus noted that the firm expected even higher memory costs in the December quarter.

The reports offered divergent figures for overall revenue growth, with Business Insider citing total revenue of $114.5 billion while The Hindu noted an expected revenue figure of $113.39 billion based on data from LSEG.

Chief Financial Officer Kevan Parekh said that Apple expected revenue to increase between 7 percent and 10 percent in the December quarter.

Investors await further details on early consumer demand for the newly launched iPhone Duo, the company's first folding smartphone.