Surging iPhone demand lifted Apple’s revenue during the three months ending in September, closing its fiscal year with record profits. Apple beat most financial forecasts despite navigating a global trade war and trying to match its Big Tech rivals in artificial intelligence. Strong early demand for the iPhone 17 line, released last month, fueled this performance.
“Apple proudly reports a September quarter revenue record of $102.5 billion, including record iPhone and Services revenue,” said CEO Tim Cook. Boosted by iPhone results, Apple earned $27.5 billion (€23.8bn), nearly doubling last year’s profit. Shares climbed 2% in after-hours trading.
Although the iPhone 17 lacks the advanced AI tools in Samsung and Google’s latest models, Apple redesigned it with sleek “liquid glass” screens. The company held prices steady despite tariffs imposed by President Donald Trump, which cost Apple $1.1bn (€950m) last quarter and may add another $1.4bn (€1.2bn) this quarter.
The formula resonated with consumers, especially in the US and Europe. iPhone sales reached $49bn (€42.4bn) from July to September, up 6% from last year but below analysts’ 8% forecast and the 13% rise recorded in the previous quarter.
Ben Barringer, Quilter Cheviot’s global head of technology research, said, “Mac sales grew 12%, iPhone sales rose 6%, but iPad and wearables stayed flat.” He noted that weakness in China dragged results down, with sales falling 4% due to forecasting issues and supply limits. IDC estimates Apple sold 58.6 million iPhones worldwide during the quarter, trailing Samsung’s 61.4 million Android phones.
For the fiscal year ending in September, Apple reported record net income of $112 billion (€96.8bn), up 20% year over year.
Holiday Outlook Promises More Growth
Tim Cook told analysts he expects strong iPhone 17 sales to continue and predicted higher sales for the holiday quarter. Apple’s CFO, Kevan Parekh, projected iPhone sales to rise at least 10% from last year’s holiday period, with total revenue increasing at a similar pace.
“Apple’s Q1 guidance of 10–12% revenue growth looks strong heading into Christmas, supported by iPhone 17 demand,” said Barringer.
Investors Weigh Apple’s AI Future
Apple’s stock has surged since an IDC report earlier this month indicated record July–September iPhone sales. The rally pushed Apple’s market value above $4 trillion for the first time, setting the stage for another high in Friday’s trading session.
Still, many investors see Apple lagging behind in the AI race, a contrast to Nvidia, which recently became the first $5 trillion company. Apple promised numerous AI features for last year’s iPhones but delivered only a few. A smarter, more capable Siri remains delayed until next year.
Barringer questioned whether Apple’s current momentum can sustain investor interest. “With uncertainty in China and faster-growing competitors like Microsoft and Nvidia, some investors might look elsewhere,” he said.
However, Apple often starts late in new technology waves before catching up and leading the field. Wedbush Securities analyst Dan Ives believes that if Apple successfully integrates advanced AI into the iPhone, its market value could grow by $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75 to $100 per share.
