Surging iPhone demand pushed Apple’s revenue higher during the quarter ending in September, closing its fiscal year with record profits.
Apple posted stronger-than-expected results for the September quarter while facing a global trade war and lagging behind Big Tech rivals in artificial intelligence.
Strong early sales of the iPhone 17 line, launched last month, powered the company’s performance.
Apple CEO Tim Cook announced, “Apple proudly reports record September-quarter revenue of $102.5 billion, including all-time highs for iPhone and Services.”
Driven by iPhone sales, Apple earned $27.5 billion (€23.8bn), almost doubling its profit from the previous year. Apple’s stock climbed 2% in after-hours trading following the announcement.
Although the iPhone 17 lacks the AI sophistication of Samsung and Google devices, Apple refreshed the design with a new “liquid glass” display. The company kept prices stable despite U.S. tariffs imposed by President Donald Trump, which raised costs by $1.1 billion (€950m) last quarter and are expected to add $1.4 billion (€1.2bn) this quarter.
Strong demand in the U.S. and Europe pushed iPhone sales to $49 billion (€42.4bn) between July and September, a 6% rise from last year. Analysts had forecast an 8% increase, following a 13% jump in the previous quarter.
Ben Barringer, Quilter Cheviot’s head of technology research, reported, “Mac sales climbed 12%, iPhone sales rose 6%, but iPad and wearables remained flat.” He added that “China’s weakness hurt results, with a 4% decline caused by supply and forecasting issues.”
IDC estimated global iPhone sales at 58.6 million units during the quarter, placing Apple second to Samsung’s 61.4 million Android phones. For the full fiscal year ending in September, Apple recorded a net income of $112 billion (€96.8bn), up 20% year over year.
Holiday Quarter Poised for Strong Growth
During a call with analysts, Tim Cook predicted continued strength for the iPhone 17 lineup and higher sales through the December quarter.
Apple’s CFO, Kevan Parekh, projected holiday-season iPhone sales to climb at least 10% compared with last year, with total revenue expected to rise similarly.
“Apple’s Q1 forecast of 10–12% revenue growth looks solid heading into the crucial Christmas period, supported by iPhone 17 demand,” Barringer said.
Market Momentum and AI Challenges
Apple’s stock has surged since an International Data Corp. report suggested record iPhone sales for the September quarter. The rally lifted Apple’s market value above $4 trillion earlier this week, setting the stage for another potential record in upcoming trading sessions.
However, Apple trails competitors in artificial intelligence, while Nvidia’s dominance in AI chips recently pushed its valuation to $5 trillion. Apple promised several AI upgrades for last year’s iPhones but delivered only a few. A redesigned Siri remains delayed until next year.
Barringer questioned Apple’s short-term appeal for investors. “With China uncertainties and faster-growing tech peers like Microsoft and Nvidia, some investors might look elsewhere,” he said.
Still, Apple often starts slow when technology shifts, only to later dominate. Wedbush Securities analyst Dan Ives believes deeper AI integration could lift Apple’s market value by $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75–$100 per share.
