Earlier last week, Apple (AAPL) announced its fourth quarter results. When most tech giants have expressed concerns and reported dismal quarterly results, Apple continues to outpace market expectations – suggesting that its product and services ecosystem is more durable even in the given economic conditions.

Apple’s Financials

Apple’s quarterly revenues grew 8.1% to $90.15 billion, significantly ahead of the market’s forecast of $88.9 billion. EPS for the quarter was $1.29, surpassing the Street’s forecast of $1.27.

By segment, iPhone revenues grew 9.7% to $42.63 billion but fell short of the market’s estimated $43.21 billion. Mac sales grew 25.4% to $11.51 billion, ahead of the estimated $9.36 billion. iPad sales fell 13% to $7.17 billion, also missing the estimated $7.94 billion. Revenues from other products grew 9.9% to $9.65 billion, ahead of the estimated $9.17 billion. The services segment revenues grew 5% to $19.19 billion, falling short of the estimated $20.10 billion.

Apple ended the year with revenues growing 8% to $394.3 billion.

Apple did not provide any forecast for the current quarter. But the company provided cautionary remarks by stating that the growth in revenues in the current quarter would be lower than the 8.1% reported for the last quarter. The market forecast an EPS of $2.15 on revenues of $128.68 billion for the quarter and an EPS of $6.50 on $412.57 billion in revenues for the current fiscal year.

Apple’s Product Upgrades

During the quarter, Apple made significant upgrades to its offerings. It announced the release of iPhone14 to mixed reviews. Several analysts believe that the latest version of the phone did not bring forth significant advancements. The phone boasts of camera upgrades for sharper photos, Action Mode for smoother videos and new safety features like Crash Detection and Emergency SOS via Satellite. Apple also announced the launch of its most advanced iPad and iPad Pro with an all-screen design, advanced cameras, and faster wireless connectivity. iPad Pro now operates on a fast M2 chip that will be particularly useful for designers and developers.

In wearables, innovation helped deliver 10% revenue growth. New features in Apple Watch Series 8 include temperature sensing capabilities, retrospective ovulation estimates, and crash detection to keep users safer. Apple also released Apple Watch SE, an inexpensive version of the Apple Watch that will help it attract a bigger user base to the device. It released the Apple Watch Ultra that has significantly advanced navigation tools and the new Oceanic+ app that can also turn into a dive computer.

Apple’s latest iOS 16 upgrade also comes with several new features including the ability to personalize iPhones through a customizable lock screen and focus filters. New features in Messages and Mail will allow users to connect and collaborate more easily. Stage Manager in iPadOS 16 and macOS Ventura will drive productivity and smoothen multitasking.

Within its Services, Apple continues to see strong engagement from its subscribers. Apple TV Plus saw recognition for its content as it received several Emmy awards and nominations. Hit content on the service includes titles like Severance, Bad Sisters, and Blackbird along with the Friday Night Baseball. Apple is going to enhance its TV service when it releases the Apple TV 4K.

Its stock is trading at $139.59 with a market capitalization of $2.2 trillion. It touched a 52-week high of $182.94 in December last year. The stock was trading at a 52-week low of $129.04 in June this year.

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