Surging demand for iPhones lifted Apple’s revenue during the three months ending in September, allowing the company to close its fiscal year with unprecedented profits. Apple posted stronger-than-expected results despite navigating a global trade conflict and working to catch up in artificial intelligence innovation.
Strong early interest in the iPhone 17 lineup, launched last month, fueled much of the performance. Tim Cook, Apple’s CEO, announced, “Apple proudly reports a September quarter revenue record of $102.5 billion, with record highs for both iPhone and Services.”
Apple earned $27.5 billion (€23.8bn) in profit, almost twice last year’s figure. Its shares climbed 2% in extended trading after the results were released.
Although the iPhone 17 lacks advanced AI tools seen in Samsung and Google devices, Apple refreshed its design with a sleek “liquid glass” finish. The company held prices steady despite $1.1 billion (€950m) in tariffs on US-bound devices from India and China, costs expected to reach $1.4 billion (€1.2bn) next quarter.
US and European consumers drove iPhone sales to $49 billion (€42.4bn) for July through September, a 6% rise from last year. Analysts had predicted an 8% increase, below the 13% growth achieved in the previous quarter.
Ben Barringer, global head of technology research at Quilter Cheviot, said, “Mac sales climbed 12%, iPhone sales rose 6%, while iPad and wearables stayed flat.” He noted a 4% decline in China due to forecasting issues and supply limits.
IDC estimated global iPhone sales at 58.6 million units during the quarter, second to Samsung’s 61.4 million Android phones. For the full fiscal year ending in September, Apple reported record net income of $112 billion (€96.8bn), up 20% year over year.
Strong Forecast for the Holiday Quarter
During a call with analysts, Tim Cook predicted continued strong demand for the iPhone 17 lineup and expected higher sales in the final quarter. CFO Kevan Parekh projected a 10% increase in iPhone sales compared to last year’s holiday season, with total revenue expected to rise at a similar pace.
Barringer said, “Apple’s Q1 guidance of 10–12% revenue growth looks solid heading into the crucial Christmas period, driven by iPhone 17 demand.”
Investors Weigh Apple’s AI Future
Apple’s stock has surged since an early report from International Data Corp. suggested record iPhone sales for July through September. The rally lifted Apple’s market value above $4 trillion for the first time, positioning the shares for another record high in Friday’s trading session.
However, Apple still trails rivals in artificial intelligence. Nvidia, whose chips dominate the AI sector, became the first $5 trillion company earlier this week. Apple had promised major AI features for last year’s iPhones but delivered only a few, delaying a smarter Siri upgrade until next year.
Barringer questioned Apple’s short-term appeal, saying, “With China risks and faster-growing peers like Microsoft and Nvidia, investors may look elsewhere for now.” Yet Apple often lags before overtaking competitors once it refines new technologies.
Wedbush Securities analyst Dan Ives predicted that deeper AI integration could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) to Apple’s market value, raising its share price by $75 to $100.
