Apple Faces Tepid Revenue Outlook Amid iPhone 16 Launch

Despite strong initial iPhone 16 sales, Apple's muted holiday forecast and AI rollout challenges weigh on investor expectations.

Apple's Q4 revenue reached $94.9 billion, a 6% increase year-over-year, but profit was impacted by a $10.2 billion EU tax settlement.
iPhone revenue hit $46.2 billion, bolstered by the iPhone 16 launch, yet Apple's holiday-quarter sales are projected to rise only in low-to-mid single digits.
The rollout of Apple Intelligence, featuring AI advancements, is expected to drive future iPhone upgrades but is currently limited to select markets and languages.
Wearables revenue declined 3% year-over-year, though the Apple Watch install base reached a new all-time high.
Apple's services sector set a new record with nearly $25 billion in revenue, highlighting the growth of paid subscriptions and service offerings.