Apple reported a 35.8 per cent annual decline in its fiscal fourth-quarter 2024 earnings, driven by a one-time charge of more than $10 billion related to a European tax ruling, while forecasting single-digit sales growth for the current quarter.
According to a regulatory filing, Apple paid a $10.2 billion income tax charge last month to settle a long-standing case, dating to 2016, concerning its tax practices in Ireland. The European Commission launched an investigation in 2014 into Apple’s tax payments in Ireland, where the tech giant’s EU headquarters is located.
Apple has been the subject of numerous lawsuits and has been involved in anti-trust investigations in Japan, South Korea and Europe.
Last month, the EU also told Apple to allow access to its tightly controlled iPhone and iPad operating systems to rival companies and third-party developers or face anti-trust fines.
The California-based company’s net profit in the previous quarter, which ended on September 28, dropped to more than $14.7 billion.
Revenue during the July-September period jumped 6 per cent on a yearly basis to $94.9 billion, beating analysts’ average estimates of $94.5 billion.
It was the company's record for sales in the September quarter.
After the earnings announcement, Apple stock dropped 2.08 per cent to trade at $221.20 a share in after-hours trading on Thursday.
It closed 1.82 per cent down at $225.91, giving the company a market value of $3.43 trillion. Its stock has jumped almost 22 per cent since the start of the year.
“This was one of the fastest-moving quarters for Apple in a long time, with several product roll-outs and updates making accountability more volatile than usual for the giant,” Thomas Monteiro, senior analyst at Investing.com, told The National.
During a call with analysts, Apple predicted “low to mid-single digit” sales growth during the December quarter.
Last month, Apple launched the iPhone 16 line-up, Apple Watch series 10, AirPods 4, and features for hearing health and sleep apnoea detection.
This week, the company released its first set of features for Apple Intelligence, “which sets a new standard for privacy in AI and supercharges our line-up heading into the holiday season”, Apple chief executive Tim Cook said.
iPhone sales returned to profit
Boosted by the launch of the latest iPhone 16 series, the company's premier product surged 5.5 per cent in the last quarter.
Net sales from iPhones stood at more than $46.2 billion, exceeded analysts’ estimates of $45.4 billion.
They accounted for nearly 48.6 per cent of the company's total revenue in the last quarter. Apple’s latest devices were released on September 20, providing about a week of new product sales in the quarter.
But iPhone sales dropped almost 1 per cent to nearly $39.3 billion in the June quarter.
The company’s total revenue from its services division grew nearly 12 per cent annually to almost $24.9 billion, while revenue from wearables, and home and accessories products dropped 3 per cent annually to more than $9 billion. It was a revenue record in the company’s services division.
“Despite slightly below general consensus, the 12 per cent growth in services revenue is also an overall positive long-term catalyst, as the division stands to benefit the most from the long-term AI adoption cycle that we expect to gain traction in the quarters ahead,” Mr Monteiro said.
Revenue from iPads and computers increased 4.5 per cent to pass $14.6 billion.
Stiff competition in China
The company’s overall sales, which include revenue from products and services, in the Greater China market (China, Hong Kong and Taiwan) remained flat on annual basis at $15 billion. However, it jumped 2 per cent on a quarterly basis driven by the launch of new iPhones and Apple watch last month.
Apple faced stiff competition in China from local brands such as Huawei, Vivo and Xiaomi.
The Americas region led Apple’s sales. It accounted for nearly 44 per cent of the company's total fourth-quarter revenue, with more than $41.6 billion.
It was followed by Europe, which added $24.9 billion – up almost 11 per cent annually – to the company’s revenue.
Japan and the rest of the Asia Pacific market added more than $13.3 billion to Apple’s fourth-quarter sales, an annual jump of 12.4 per cent.
Apple said its board of directors had declared a cash dividend, payable on November 14, of $0.25 for each share of the company’s common stock.
“Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders,” said Luca Maestri, Apple’s chief financial officer.
He said, without disclosing the exact number, that Apple’s active installed base of devices reached a new all-time high across all products and all geographic segments in the last quarter.
Sholto Byrnes on Myanmar politics
WandaVision
Starring: Elizabeth Olsen, Paul Bettany
Directed by: Matt Shakman
Rating: Four stars
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The Baghdad Clock
Shahad Al Rawi, Oneworld
More on Quran memorisation:
Five%20calorie-packed%20Ramadan%20drinks
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Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Feeding the thousands for iftar
Six industrial scale vats of 500litres each are used to cook the kanji or broth
Each vat contains kanji or porridge to feed 1,000 people
The rice porridge is poured into a 500ml plastic box
350 plastic tubs are placed in one container trolley
Each aluminium container trolley weighing 300kg is unloaded by a small crane fitted on a truck
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
