Apples Quarterly Profit Down Because of Tax Payment in Europe

Over the past month, Apple blanketed television with commercials about how its newest iPhone had exciting artificial intelligence capabilities even though the company was still working on many of the features it was pitching.But Apple’s delay with A.I.didn’t cut into profits.

Regulators did.On Monday, the tech giant said sales of iPhones, iPads and subscription services like Apple Music had helped the company increase its quarterly revenue by 6 percent to $94.93 billion during the three months that ended in September.The increased revenue didn’t translate into profit gains because Apple, which lost a court case in September, was forced to pay the European Union $14.4 billion in unpaid taxes.The one-time payment reduced its quarterly profit by 36 percent to $14.74 billion.The results exceeded Wall Street analysts’ expectations for $94.58 billion in sales and, excluding the one-time tax payment, would have topped projections for $24.49 billion in profit.

Shares fell 1.8 percent in after-hours trading.In September, Apple unveiled iPhones that could use its generative A.I.system, called Apple Intelligence, to sort messages, offer writing suggestions and use a more capable Siri virtual assistant.

It released the first of those features this week, but other A.I.bells and whistles are coming out more slowly than expected.Still, Apple said iPhone sales rose 5.5 percent to $46.22 billion during the quarter that ended in September.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe....