Strong iPhone demand pushed Apple’s revenue higher in the quarter ending September, closing the fiscal year with record profits. The company reported stronger-than-expected results despite the global trade war and growing pressure to match rivals in artificial intelligence.
Apple said the iPhone 17 launch drove its performance. “Apple is proud to post a September-quarter record of $102.5 billion in revenue, with record-breaking iPhone and Services income,” said CEO Tim Cook. Boosted by iPhone sales, Apple earned $27.5 billion (€23.8bn), nearly doubling last year’s profit. The stock climbed 2% in after-hours trading.
The iPhone 17 lacks Samsung’s and Google’s AI capabilities but features a redesigned “liquid glass” display. Apple held prices steady even as tariffs on U.S.-bound devices cost $1.1 billion (€950m) last quarter and may cost another $1.4 billion (€1.2bn) in the next. Despite the added costs, consumers in the U.S. and Europe kept buying. iPhone sales reached $49 billion (€42.4bn), up 6% from last year, slightly below analyst expectations but still strong.
Ben Barringer from Quilter Cheviot said, “Mac sales rose 12%, iPhone sales about 6%, while iPad and wearables stayed flat.” He noted weak demand in China, where sales dropped 4% due to forecasting problems and supply constraints. IDC estimated Apple sold 58.6 million iPhones globally between July and September, ranking second behind Samsung’s 61.4 million.
For the full fiscal year, Apple posted a record net income of $112 billion (€96.8bn), a 20% increase from the previous year.
iPhone 17 Expected to Fuel Holiday Growth
Tim Cook told analysts he expects the iPhone 17 to keep performing strongly through the holiday season. Chief Financial Officer Kevan Parekh projected at least 10% growth in iPhone sales compared to last year’s holidays, with total revenue expected to rise similarly.
“Apple’s Q1 forecast of 10–12% growth looks strong as it enters the crucial Christmas period,” said Barringer, citing sustained demand for the iPhone 17.
Investors Question Apple’s AI Strategy
Apple’s stock surged after International Data Corp. reported record iPhone sales, pushing its market value above $4 trillion this week. Analysts expect another stock rally as trading resumes Friday. However, investors question Apple’s slow progress in artificial intelligence compared to leaders like Nvidia, which recently hit a $5 trillion valuation.
Apple had promised a wide rollout of AI features for last year’s iPhones but delivered only a few. A major Siri upgrade remains delayed until next year. Barringer expressed concern: “With China uncertainty and faster growth from Microsoft and Nvidia, some investors may look elsewhere.”
Still, Apple has a long record of catching up after slow starts. Wedbush analyst Dan Ives predicted that stronger AI integration could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) in market value, potentially lifting the stock by $75 to $100 per share.
