Strong iPhone demand lifted Apple’s revenue in the three months ending September, capping its fiscal year with record earnings. The company outperformed expectations despite global trade tensions and pressure to match its rivals in artificial intelligence.
Apple credited the surge to heavy demand for the iPhone 17 series launched last month. “Apple proudly reports a September quarter record of $102.5 billion in revenue, with all-time highs for iPhone and Services,” said CEO Tim Cook.
The company earned $27.5 billion (€23.8bn), nearly doubling last year’s profit. Investors pushed Apple shares up 2% in after-hours trading.
Apple redesigned the iPhone 17 with a sleek “liquid glass” display while maintaining prices despite $1.1 billion (€950m) in tariff costs. The tariffs, linked to U.S. trade policies, will likely cost another $1.4 billion (€1.2bn) by year’s end.
Consumers in the United States and Europe responded strongly, generating $49 billion (€42.4bn) in iPhone sales from July to September, up 6% year over year. Analysts had expected an 8% rise, following a 13% jump in the previous quarter.
Ben Barringer of Quilter Cheviot noted, “Mac sales climbed 12%, iPhone sales increased 6%, but iPad and wearables stayed flat.” He added, “Sales in China fell 4% due to forecasting issues and supply limits.” IDC reported Apple sold 58.6 million iPhones worldwide, trailing Samsung’s 61.4 million Android phones.
For the fiscal year ending in September, Apple achieved record net income of $112 billion (€96.8bn), up 20% from last year.
Apple Anticipates Strong Holiday Growth
Tim Cook told analysts he expects iPhone 17 sales to stay strong through the holiday season. CFO Kevan Parekh forecast at least a 10% year-over-year increase in iPhone sales and total revenue during the final quarter.
“Apple’s Q1 outlook of 10–12% growth looks promising heading into the critical Christmas period,” Barringer said, crediting sustained demand for the iPhone 17.
Investors Weigh Apple’s AI Future
Apple’s stock soared after reports from International Data Corp. predicted record July–September iPhone sales. The rally pushed Apple’s market value above $4 trillion this week, setting up another potential high on Friday.
However, analysts still view Apple as trailing in the AI revolution. Nvidia reached a $5 trillion valuation this week, powered by its dominance in AI chips.
Apple pledged a major rollout of AI features last year but delivered only a few updates. A smarter version of Siri remains delayed until next year.
Barringer questioned Apple’s investment appeal, saying, “Uncertainty in China and faster growth from Microsoft and Nvidia could shift investor interest elsewhere.”
Yet Apple often starts slowly when technology trends shift, only to catch up and lead the field. Wedbush analyst Dan Ives predicted that integrating more AI into iPhones could raise Apple’s valuation by $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75 to $100 per share.
