Apple reported its strongest fiscal year ever in revenue and earnings per share, driven by iPhone sales rising 17.5% to $57.6 billion and Mac revenue climbing 24% to $10.8 billion. The company achieved this growth without matching the heavy infrastructure spending seen from rivals, while simultaneously integrating generative AI features across its device ecosystem. Management highlighted a strategy of utilising existing hardware capabilities rather than building new data centres, though shares dipped after warnings that higher memory costs would squeeze holiday quarter margins.
This approach matters because it allows Apple to compete in the artificial intelligence market while maintaining its traditional hardware profit structure. By focusing on on-device processing, the firm avoids the massive capital expenditure required for large cloud models, preserving cash for other investments. The move also keeps user data local, aligning with privacy standards that differ from cloud-first competitors.
* iPhone revenue reached a September quarter record of $57.6 billion
* Mac revenue hit its highest level in four years at $10.8 billion
* Rising memory costs are expected to reduce profit margins in the holiday quarter
