Surging demand for iPhones lifted Apple’s revenue in the three months ending September, delivering record annual profits. Apple reported stronger-than-expected results despite ongoing trade tensions and its slow progress in artificial intelligence. The company credited the performance to robust sales of the new iPhone 17 lineup, launched last month.
“Apple proudly announces record September-quarter revenue of $102.5 billion, including all-time highs for iPhone and Services,” said CEO Tim Cook. The iPhone boom pushed profits to $27.5 billion (€23.8bn), nearly double last year’s figure. Apple’s shares climbed 2% in after-hours trading.
Apple refreshed the iPhone 17 with a redesigned “liquid glass” display while maintaining prices despite rising tariffs. The company absorbed $1.1 billion (€950m) in tariff costs last quarter and expects another $1.4 billion (€1.2bn) in the next. The model’s appeal among U.S. and European consumers fueled $49 billion (€42.4bn) in iPhone sales, up 6% year over year—slightly below analysts’ 8% projection and slower than the 13% rise earlier in the year.
Apple Balances Gains and Global Pressures
Ben Barringer of Quilter Cheviot noted, “Mac sales climbed 12%, and iPhone sales rose 6%, but iPad and wearables stayed flat.” He said weak Chinese sales fell 4% because of forecasting problems and supply issues.
IDC estimated Apple sold 58.6 million iPhones globally from July to September, second only to Samsung’s 61.4 million Android units. For the full fiscal year ending September, Apple earned a record net income of $112 billion (€96.8bn), up 20% from the prior year.
Cook told analysts he expects the iPhone 17 line to sustain strong demand through the holiday season. CFO Kevan Parekh projected a 10% sales rise during the December quarter, with total revenue growing at a similar pace. Barringer added, “Apple’s forecast of 10–12% revenue growth looks solid heading into Christmas, supported by iPhone 17 demand.”
Investors Weigh Apple’s AI Future
Apple’s stock surged after International Data Corp. predicted record iPhone sales, pushing its market value beyond $4 trillion for the first time. Analysts expect the momentum to continue into Friday’s trading session. Still, Apple trails rivals in artificial intelligence, allowing Nvidia—whose chips power AI tools—to reach a $5 trillion valuation earlier this week.
Apple pledged to expand AI features on older iPhones but delivered only a few updates. The long-promised smarter Siri assistant remains unfinished and may not launch until next year. Barringer warned that “uncertainty in China and faster-growing tech peers like Microsoft and Nvidia may drive investors elsewhere for now.”
Yet analysts say Apple often rebounds after slow starts in new technologies. Wedbush’s Dan Ives predicted that successful AI integration could raise Apple’s market value by $1 trillion (€860bn) to $1.5 trillion (€1.3tr), adding $75 to $100 per share.
