Strong iPhone demand lifted Apple’s revenue in the three months ending September, closing its fiscal year with record profits. The company exceeded most forecasts despite global trade tensions and its struggle to keep pace in the artificial intelligence race. Apple’s latest performance, announced Thursday, reflected high demand for the new iPhone 17 series, launched last month.
“Apple proudly reports a September quarter revenue record of $102.5 billion, including records for iPhone and Services,” said CEO Tim Cook. The company earned $27.5 billion (€23.8bn), nearly doubling last year’s profit. Apple shares rose 2% in after-hours trading following the announcement.
Although the iPhone 17 lacks the advanced AI features of Samsung and Google devices, Apple refreshed its design with a “liquid glass” look. The company kept prices stable despite facing tariffs on U.S.-bound devices made in India and China. Those tariffs cost Apple $1.1 billion (€950m) last quarter and are projected to reach $1.4 billion (€1.2bn) in the final quarter of the year.
Apple’s strategy appealed to buyers, particularly in the U.S. and Europe, resulting in $49 billion (€42.4bn) in iPhone sales from July to September — a 6% increase from last year. Analysts had expected 8%, following a 13% rise the previous quarter.
Apple’s Global Sales Show Mixed Results
Ben Barringer of Quilter Cheviot reported that “Mac sales climbed 12%, iPhone sales rose about 6%, but iPad and wearables stayed flat.” He noted that weaker demand in China dragged results down, with sales falling 4% due to forecasting errors and supply limits.
IDC estimated Apple sold 58.6 million iPhones globally in the July–September quarter, ranking second behind Samsung, which shipped 61.4 million phones. For the full fiscal year ending in September, Apple reported a record net income of $112 billion (€96.8bn), a 20% jump from the previous year.
Tim Cook told analysts he expected the iPhone 17 to sustain its strong performance through the holiday season. Chief Financial Officer Kevan Parekh forecast iPhone sales to climb at least 10% from last year’s holiday period, with total revenue rising similarly. “Apple’s Q1 guidance of 10–12% growth looks solid heading into Christmas, driven by iPhone 17 demand,” said Barringer.
Investors Weigh Apple’s AI Delays and Market Strength
Apple’s stock surged earlier this month after International Data Corp. signaled record iPhone sales. The rally pushed Apple’s market value above $4 trillion for the first time, setting up another potential high in Friday’s trading. Yet, many see Apple lagging in the AI race — a contrast to Nvidia, which recently became the first company valued at $5 trillion.
Apple failed to deliver several promised AI upgrades on last year’s iPhones, including a smarter Siri assistant, now delayed until next year. Barringer questioned Apple’s near-term appeal, saying, “With China uncertainty and rivals like Microsoft and Nvidia growing faster, investors may look elsewhere.”
Still, Apple has often entered new tech trends late before overtaking competitors. Analyst Dan Ives of Wedbush Securities predicted that if Apple successfully integrates advanced AI into future iPhones, its market value could climb by $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75 to $100 per share.
