Strong iPhone demand pushed Apple’s revenue to new records in the three months ending in September. The company closed its fiscal year with record profits despite global trade tensions and intense competition in artificial intelligence.
Apple posted better-than-expected results on Thursday, driven mainly by the successful launch of the iPhone 17 series. CEO Tim Cook announced, “Apple achieved a September quarter revenue record of $102.5 billion, including all-time highs for iPhone and Services.”
Apple earned $27.5 billion (€23.8 billion) in profit, nearly twice last year’s figure. Investors responded positively, sending shares up 2% in after-hours trading.
Although the iPhone 17 lacks the advanced AI tools seen in Samsung and Google devices, Apple refreshed its design with a sleek “liquid glass” display. The company held steady on pricing despite U.S. tariffs that cost $1.1 billion (€950 million) last quarter and may reach $1.4 billion (€1.2 billion) in the next.
Consumers in the United States and Europe embraced the new models, generating $49 billion (€42.4 billion) in iPhone sales, a 6% increase from last year. Analysts had expected 8% growth, slightly below the 13% rise recorded in the previous quarter.
Ben Barringer of Quilter Cheviot noted, “Mac sales climbed 12%, iPhone sales rose 6%, but iPad and wearables remained flat.” He added that “sales in China fell 4% due to weak demand and supply issues.” IDC estimated global iPhone sales at 58.6 million units, trailing Samsung’s 61.4 million.
Apple ended the fiscal year with record net income of $112 billion (€96.8 billion), up 20% from 2023.
Holiday Season Expected to Strengthen Growth
Tim Cook predicted continued strong performance for the iPhone 17 lineup during the year’s final quarter. He told analysts that Apple expects further growth as holiday shopping accelerates.
Chief Financial Officer Kevan Parekh projected at least a 10% increase in iPhone sales compared to last year’s holiday season. He said total revenue should rise at a similar pace. Barringer agreed, noting, “Apple’s forecast of 10–12% revenue growth looks solid heading into the crucial Christmas period, supported by iPhone 17 demand.”
Investors Weigh Apple’s Future in the AI Race
Apple’s stock surged after early data from IDC suggested record July-September iPhone sales. The rally lifted Apple’s market value above $4 trillion for the first time, setting the stage for another high in Friday trading.
However, Apple still trails competitors in artificial intelligence. Nvidia, whose chips drive AI technology, recently became the first company valued at $5 trillion. Apple promised broader AI upgrades last year but delivered only limited features. The major update to Siri remains delayed until next year.
Barringer cautioned investors, saying, “With uncertainty in China and faster growth from Microsoft and Nvidia, some may look elsewhere for short-term gains.”
Yet analysts remain confident in Apple’s resilience. Dan Ives of Wedbush Securities predicted that new AI capabilities could raise Apple’s market value by $1 trillion (€860 billion) to $1.5 trillion (€1.3 trillion), adding $75 to $100 per share if the company regains momentum.
