Apple Logo on Apple Store facade in Hong Kong at night
Apple reported 4th quarter earnings and revenues that beat Wall Street expectations this week. However, net income fell to account for a one-time charge related to a tax ruling in Europe.
The iPhone maker reported earnings of $1.64 a share versus $1.60 estimated while revenues reached $94.93 billion versus the estimate of $94.58 billion.
$46.22 billion in revenues was attributed specifically to iPhone sales which was about $1 billion more than expected. Apple CEO Tim Cook was particularly enthusiastic about the adoption rate for iOS 18.1 explaining that the Apple Intelligence software is “a compelling upgrade reason.”
In September, the European Court of Justice upheld a ruling that Apple owes €13 billion or approximately $14.3 billion in back taxes to Ireland. Consequently, Apple has decided to take a one-time charge of $10.2 billion in its books.
Apple finished trading this week to close at $222 a share, up 18% year-to-date.
In related news, Berkshire Hathaway (NYSE: BRK-B) filed a report with the SEC to disclose that it had continued reducing its holdings in Apple to less than $70 billion at the end of September. While the stake still represents Berkshire’s biggest single investment, it is well below the $174 billion worth of Apple stock held at the end of 2023.
