Strong iPhone demand lifted Apple’s revenue in the July–September quarter, ending its fiscal year with record profits. The company delivered stronger-than-expected results despite global trade tensions and its slow progress in artificial intelligence.
Apple attributed its success mainly to the launch of the iPhone 17 line-up, which hit stores last month. “Apple is proud to report a September quarter record of $102.5 billion,” said CEO Tim Cook. “This includes record iPhone and Services revenue.”
Driven by iPhone sales, Apple earned $27.5 billion (€23.8bn), nearly doubling last year’s profit. Shares rose 2% in after-hours trading. The iPhone 17 lacks the AI innovations seen in Samsung and Google devices but features a new “liquid glass” design.
Apple held steady on pricing despite U.S. tariffs on India- and China-made products. The tariffs cost Apple $1.1 billion (€950m) last quarter and could total $1.4 billion (€1.2bn) in the next three months. The company’s formula still worked, generating $49 billion (€42.4bn) in iPhone sales, a 6% rise from last year. Analysts had expected 8%.
Ben Barringer of Quilter Cheviot noted, “Mac sales grew 12%, iPhone sales rose 6%, but iPad and wearables stayed flat.” He added, “Sales in China dropped 4% due to forecasting issues and supply limits.” IDC reported 58.6 million iPhones sold globally, just behind Samsung’s 61.4 million.
For the full fiscal year, Apple posted a record $112 billion (€96.8bn) in net income, up 20% from the previous year.
Holiday Forecasts Signal More Growth
Tim Cook told analysts he expects the iPhone 17 to perform strongly through the holiday season. Chief financial officer Kevan Parekh projected iPhone sales to climb at least 10% from last year’s holidays, with total revenue following the same pace.
“Apple’s Q1 guidance of 10–12% revenue growth looks solid ahead of Christmas, supported by iPhone 17 demand,” Barringer said.
Investor Confidence Faces New Questions
Apple’s stock surged after data from International Data Corp. predicted record iPhone sales. The company’s value passed $4 trillion for the first time this week, setting up another possible high on Friday. Still, Apple trails in artificial intelligence progress, a gap that allowed Nvidia to reach a $5 trillion valuation earlier.
Apple failed to deliver many promised AI upgrades for last year’s iPhones, including the revamped Siri assistant, now delayed until next year. Barringer questioned whether Apple can keep investors engaged. “With China’s weakness and stronger growth from Microsoft and Nvidia, some may shift their focus,” he said.
Apple has often started late in new tech trends but eventually dominated. Analyst Dan Ives of Wedbush Securities predicted that successful AI integration could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) in market value, boosting Apple shares by $75–$100 each.
