Apple also provided a less optimistic sales outlook for the first quarter, causing shares to drop as analysts had higher expectations. The company sees FQ1 revenue around $118 billion, while analysts were looking for a number closer to $123 billion.
Apple's sales have now declined for four consecutive quarters, signaling the longest slowdown since 2001. The company faces challenges in dealing with sluggish demand and a challenging smartphone market in China.
Apple’s FQ4 revenue fell 0.7% to $89.5 billion, dragged by a fall in Greater China revenue to $15.08 billion. Analysts were looking for $89.35 billion and $17.01 billion, respectively.
iPhone revenue only met analyst expectations while Mac sales came in vastly below estimates with management noting a “challenging” environment for this sector.
Adjusted earnings per share were reported at $1.46, topping the expected $1.39.
“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” said Luca Maestri, Apple’s CFO.