Surging demand for iPhones pushed Apple’s revenue higher in the quarter ending September, capping its fiscal year with record profits. The company posted stronger-than-expected earnings despite trade tensions and pressure to advance its artificial intelligence efforts.
Apple’s performance in the September quarter stemmed mainly from the strong debut of the iPhone 17 lineup. CEO Tim Cook announced, “Apple achieved a September quarter record of $102.5 billion in revenue, with all-time highs for iPhone and Services.” The company earned $27.5 billion (€23.8bn) in profit, almost double last year’s figure. Shares rose 2% in after-hours trading.
Although the iPhone 17 lacks advanced AI tools offered by Samsung and Google, Apple refreshed the design with sleek “liquid glass” displays. The company maintained prices despite U.S. tariffs that cost $1.1 billion (€950m) last quarter and may add $1.4 billion (€1.2bn) this quarter. The formula appealed to buyers in the U.S. and Europe, generating $49 billion (€42.4bn) in iPhone sales — up 6% year over year, slightly below analysts’ 8% forecast.
Ben Barringer of Quilter Cheviot noted that Mac sales climbed 12%, iPhone sales rose 6%, but iPad and wearables stayed flat. He said China’s 4% decline, caused by forecasting issues and supply limits, weighed on overall results. IDC estimated Apple sold 58.6 million iPhones worldwide between July and September, trailing Samsung’s 61.4 million.
Apple closed its fiscal year with a record $112 billion (€96.8bn) in net income, up 20% from 2023.
Holiday Season Set to Drive Growth
Tim Cook told analysts he expects iPhone 17 sales to remain strong through year-end. CFO Kevan Parekh projected at least 10% growth in holiday iPhone sales compared to last year, with total revenue rising at a similar rate.
Barringer said, “Apple’s Q1 guidance of 10–12% revenue growth looks solid heading into the critical Christmas season, supported by iPhone 17 demand.”
Investors Weigh Apple’s Future in the AI Race
Apple’s shares soared after International Data Corp. reported record iPhone sales, lifting its market value above $4 trillion for the first time. Analysts expect the momentum to continue as trading resumes on Friday.
However, Apple lags behind rivals in artificial intelligence, allowing chipmaker Nvidia to reach a $5 trillion valuation this week. Apple delivered only limited AI upgrades to last year’s iPhones, delaying the launch of an enhanced Siri until next year.
Barringer questioned Apple’s near-term appeal, citing China’s instability and faster-growing competitors like Microsoft and Nvidia. But analysts noted Apple’s history of late comebacks in new technologies.
Wedbush Securities’ Dan Ives predicted that if Apple successfully integrates advanced AI into future iPhones, it could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) in market value, raising its stock by $75 to $100 per share.
