Strong iPhone sales pushed Apple’s revenue higher in the July–September quarter, ending its fiscal year with record profits. Despite global trade tensions and lagging in the AI race, Apple delivered results that exceeded expectations. Robust early demand for the iPhone 17 lineup drove the strong performance.
CEO Tim Cook announced, “Apple achieved a September quarter record of $102.5 billion in revenue, with record-breaking iPhone and Services results.” Boosted by iPhone success, Apple earned $27.5 billion (€23.8 billion), nearly twice last year’s profit. Shares climbed 2% in after-hours trading following the announcement.
Although the iPhone 17 lacks the advanced AI tools seen in Samsung and Google devices, Apple refreshed its design with sleek “liquid glass” screens. The company kept prices steady even under $1.1 billion (€950m) in tariff pressure from U.S. import duties. These costs are expected to rise to $1.4 billion (€1.2bn) in the next quarter.
Apple sold $49 billion (€42.4bn) worth of iPhones during the quarter, up 6% from a year earlier. That increase fell short of analysts’ 8% forecast and the 13% rise recorded in the previous quarter.
Market Shifts and Regional Challenges
Quilter Cheviot’s Ben Barringer reported that “Mac sales grew 12%, iPhone sales rose 6%, while iPad and wearables stayed flat.” He noted that “sales in China dropped 4% because of supply limits and forecasting errors.” IDC estimated Apple sold 58.6 million iPhones globally between July and September, second only to Samsung’s 61.4 million Android phones.
For the full fiscal year ending in September, Apple posted a record $112 billion (€96.8bn) in net income, up 20% from the previous year. Cook told analysts that iPhone 17 sales should continue to rise through the holiday season.
Apple expects its year-end iPhone sales to climb at least 10% over last year’s holiday quarter. CFO Kevan Parekh predicted total revenue would grow at a similar rate. Barringer added, “Apple’s guidance of 10–12% revenue growth looks strong heading into Christmas, supported by iPhone 17 demand.”
Investors Weigh Apple’s AI Future
Apple’s stock surged after International Data Corp. reported record iPhone sales earlier this month. The rally pushed Apple’s market value past $4 trillion for the first time. Analysts expect another potential high as trading resumes on Friday.
However, Apple remains behind in artificial intelligence. Nvidia, whose chips power much of today’s AI technology, became the first $5 trillion company earlier this week. Apple had pledged major AI updates for existing iPhones but delivered only limited features. A redesigned Siri will not arrive until next year.
Barringer warned that investors may look elsewhere for faster growth. “With China uncertainty and rivals like Microsoft and Nvidia growing faster, Apple could lose short-term appeal,” he said. Yet analysts note Apple’s history of late success.
Wedbush Securities’ Dan Ives predicted that Apple could eventually add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) in value if it successfully integrates AI across the iPhone. He said such innovation could raise its share price by $75 to $100.
