Strong demand for iPhones pushed Apple’s revenue higher in the three months ending in September. The company closed its fiscal year with record profits. Despite global trade tensions and pressure to catch up in artificial intelligence, Apple beat most financial expectations.
The iPhone 17 launch last month powered much of the growth. “Apple proudly reports a September quarter revenue record of $102.5 billion,” said CEO Tim Cook. “We also achieved record iPhone and Services revenue.” The company earned $27.5 billion (€23.8bn), nearly double last year’s profit. Apple’s stock climbed 2% in after-hours trading.
Apple enhanced its iPhone 17 line with a new “liquid glass” design, though it lacks advanced AI features from Samsung and Google. The company kept prices steady despite U.S. tariffs that added $1.1 billion (€950m) in costs last quarter and may rise to $1.4 billion (€1.2bn) next quarter.
iPhone Drives Growth While China Weighs on Sales
Apple sold $49 billion (€42.4bn) worth of iPhones between July and September, up 6% from last year. That growth fell short of analysts’ 8% forecast and the 13% rise in the previous quarter. “Mac sales rose 12%, and iPhone sales increased around 6%, but iPad and wearables remained flat,” said Ben Barringer of Quilter Cheviot. He noted that sales in China dropped 4% due to forecasting issues and supply constraints.
IDC estimated Apple sold 58.6 million iPhones globally, second only to Samsung’s 61.4 million Android phones. For the fiscal year ending in September, Apple posted a record net income of $112 billion (€96.8bn), up 20% from the prior year.
Tim Cook told analysts he expects iPhone 17 sales to stay strong through the holidays. Apple’s CFO Kevan Parekh forecast at least a 10% rise in holiday-season iPhone sales, with overall revenue growing at a similar rate. Barringer said Apple’s Q1 guidance of 10–12% revenue growth “looks strong heading into the crucial Christmas season.”
Investors Watch Apple’s AI Future
Apple’s stock soared after a report from International Data Corp. predicted record iPhone sales. The rally lifted Apple’s market value above $4 trillion this week, setting the stage for another possible record on Friday. However, Apple still trails rivals in artificial intelligence. Nvidia’s dominance in AI chips helped it reach a $5 trillion valuation earlier this week.
Apple promised extensive AI features for last year’s iPhones but delivered only a few. The long-awaited Siri overhaul remains unfinished until next year. Barringer questioned Apple’s ability to sustain investor excitement, saying, “Uncertainty in China and faster growth at Microsoft and Nvidia may divert investors.”
Yet Apple has a track record of catching up after slow starts. If it successfully integrates advanced AI tools into future iPhones, analyst Dan Ives of Wedbush Securities believes Apple’s market value could climb another $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75 to $100 per share.
