Strong iPhone demand pushed Apple’s revenue higher in the three months ending in September, closing its fiscal year with record profit. The company posted stronger-than-expected results despite global trade tensions and growing competition in artificial intelligence.
Apple’s September-quarter success came mainly from the powerful debut of the iPhone 17 line-up. “Apple proudly reports a record September-quarter revenue of $102.5 billion, including all-time highs for iPhone and Services,” said CEO Tim Cook.
Driven by iPhone sales, Apple earned $27.5 billion (€23.8bn), nearly double its profit from a year earlier. Its stock climbed 2% in after-hours trading.
Although the iPhone 17 lacks the advanced AI tools seen in Samsung and Google devices, Apple refreshed its models with a sleek “liquid glass” design. It also held prices steady, even as tariffs on U.S.-bound devices manufactured in India and China cost the company $1.1 billion (€950m) last quarter, with another $1.4 billion (€1.2bn) expected by year’s end.
Consumers responded strongly, especially in the U.S. and Europe, driving iPhone revenue to $49 billion (€42.4bn) from July to September, a 6% rise over last year. That fell short of analysts’ 8% forecast and trailed the 13% growth seen in the previous quarter.
Ben Barringer of Quilter Cheviot said, “Mac sales grew 12%, iPhone sales rose 6%, while iPad and wearables stayed flat.” He added, “Weakness in China hurt results, with sales down 4% due to forecasting errors and supply limits.”
IDC estimated Apple sold 58.6 million iPhones during the quarter, trailing Samsung’s 61.4 million Android phones.
For the full fiscal year ending in September, Apple reported record net income of $112 billion (€96.8bn), up 20% year over year.
Holiday Outlook Sparks Optimism
Tim Cook told analysts he expected the iPhone 17 line to remain strong through the holiday season. Apple projects at least 10% year-over-year iPhone sales growth for the final quarter, with overall revenue increasing at a similar pace, according to CFO Kevan Parekh.
“Apple’s Q1 forecast of 10–12% revenue growth looks solid heading into Christmas, driven by iPhone 17 demand,” said Barringer.
Market Value Soars Amid AI Competition
Apple’s stock has surged since an IDC report hinted at record iPhone sales. The rally pushed its market value past $4 trillion this week, setting up another possible high in Friday trading.
Still, investors question Apple’s AI progress. Nvidia recently became the first company valued at $5 trillion as its chips dominate AI technology. Apple had promised extensive AI features for last year’s iPhones but delivered only a few, delaying major Siri upgrades until next year.
Barringer warned, “Uncertainty in China and faster-growing tech rivals like Microsoft and Nvidia may drive some investors away.”
Yet Apple has often entered new technology fields late, only to dominate later. Wedbush analyst Dan Ives predicted that stronger AI integration could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) to Apple’s market value, equal to $75–$100 per share.
