Surging iPhone demand lifted Apple’s revenue during the three months ending in September, closing its fiscal year with record profits. Apple delivered stronger-than-expected results despite facing a global trade war and trailing competitors in the race for artificial intelligence dominance. The new iPhone 17 line-up, launched last month, drove much of this performance.
Tim Cook, Apple’s CEO, announced on Thursday that the company achieved a September-quarter revenue record of $102.5 billion, including all-time highs for iPhone and Services. Energized by these results, Apple earned $27.5 billion (€23.8bn), nearly doubling its profit from a year earlier. Apple’s shares climbed 2% in after-hours trading following the announcement.
Although the iPhone 17 lacks advanced AI tools featured in Samsung and Google models, Apple redesigned it with sleek “liquid glass” displays. The company maintained pricing despite tariffs on U.S.-bound devices made in India and China. These tariffs cost Apple $1.1 billion (€950m) last quarter and could add another $1.4 billion (€1.2bn) in the coming months.
Global Sales Surge Despite Headwinds
Consumers in the U.S. and Europe responded strongly, driving iPhone sales to $49 billion (€42.4bn) between July and September, up 6% from last year. The growth fell short of analysts’ 8% forecast and the 13% surge in the previous quarter. Ben Barringer, head of technology research at Quilter Cheviot, said Mac sales rose 12%, while iPhone sales grew 6%. He noted that iPad and wearable sales remained flat. Weakness in China weighed on results, with sales dropping 4% because of supply constraints and forecasting issues.
IDC estimated that Apple sold 58.6 million iPhones globally during the July–September quarter, placing it behind Samsung, which sold 61.4 million Android phones. For the full fiscal year ending in September, Apple reported record net income of $112 billion (€96.8bn), marking a 20% annual increase.
Tim Cook told analysts that he expects the iPhone 17 line to keep performing well and predicted higher sales in the year’s final quarter. Apple’s CFO, Kevan Parekh, projected at least 10% growth in holiday iPhone sales compared to last year. Total revenue should rise at a similar pace. Barringer described Apple’s Q1 outlook of 10–12% revenue growth as “robust,” driven by continued iPhone demand heading into the crucial holiday period.
Investors Weigh Apple’s Future in AI
Apple’s stock surged after a recent IDC report hinted at record iPhone sales, pushing its market value above $4 trillion for the first time. Investors anticipate new highs when trading resumes Friday. However, Apple remains behind rivals in the AI boom — one reason Nvidia became the first company valued at $5 trillion earlier this week.
Apple promised a suite of AI tools for last year’s iPhones but delivered only a few, leaving out a revamped Siri. The upgraded assistant is now delayed until next year. Barringer questioned whether Apple’s growth can keep attracting investors while uncertainty in China persists and companies like Microsoft and Nvidia post faster gains.
Still, Apple has repeatedly rebounded after slow starts in emerging technologies. Wedbush Securities analyst Dan Ives predicted that deeper AI integration could add $1 trillion (€860bn) to $1.5 trillion (€1.3tr) to Apple’s market value, increasing its share price by $75 to $100.
