Apple reported fourth-quarter earnings on Thursday that provided an early glimpse into how the iPhone 17 lineup could also be catching on up to now.
Apple’s earnings for the quarter that resulted in September met analysts’ expectations on income however barely missed on iPhone sales. iPhone sales within the fourth quarter have been $49 billion, up from $46.2 billion in comparison with the identical interval a yr in the past however barely decrease than the $50.1 billion Wall Street was anticipating. Overall income was $102.5 billion, a rise from $94.9 billion a yr in the past.
Apple says each income and iPhone sales numbers characterize a file for the fourth quarter. Services income, one other intently watched metric, additionally hit an all-time file at $28.8 billion, a rise from roughly $25 billion a yr in the past.
On Apple’s earnings name on Thursday, CEO Tim Cook stated the corporate expects the December quarter’s income “to be the best ever for the company and the best ever for the iPhone,” suggesting robust iPhone 17 sales.
Apple shares have been up round 3% in after-hours buying and selling.
Wall Street is searching for assurance that Apple’s greatest income driver continues to be rising regardless of issues that the corporate is behind within the AI race. Analysts had estimated robust demand for the iPhone 17 lineup, which Apple launched in late September.
However, total sales in China shrunk in comparison with a yr in the past, with the corporate producing $14.5 billion in income within the area. In 2024, Apple earned $15 billion throughout the identical interval.
Thursday’s outcomes paint an early image of iPhone sales since its fourth quarter ended on September 27, eight days after the iPhone 17 launch. Still, it’s potential that sales slowed within the July and August months as customers waited for the iPhone 17.
The iPhone 17 collection outsold its predecessor by 14% in its first 10 days within the United States and China, based on Counterpoint Research, with the bottom iPhone 17 and iPhone 17 Pro Max being probably the most in demand. The iPhone Air, touted because the thinnest iPhone ever, is seeing “muted customer interest” based on UBS, which has been monitoring retail wait instances for brand new iPhones.
Apple’s iPhone enterprise is at all times below a microscope as the corporate’s largest income driver. But the tech business is especially paying shut consideration, prompted by hypothesis that one other AI-powered gadget could finally supplant the smartphone.
Wall Street will possible search for alerts relating to Apple’s AI technique on the corporate’s Thursday earnings name. Apple delayed an replace to Siri earlier this yr that might have introduced it nearer to OpenAI’s ChatGPT and Google’s Gemini. Rivals like Google, Microsoft and Samsung, in the meantime, proceed to pour billions into their AI infrastructure.
The earnings are available what has been a difficult yr for Apple.
The firm has been impacted by President Donald Trump’s commerce warfare, with Cook saying the corporate anticipated to incur a $1.1 billion hit from tariffs within the fourth quarter. Apple has additionally confronted stress from the Trump administration to make its iPhones domestically and has dedicated to investing $600 billion towards increasing its US operations. But Thursday’s earnings, together with the corporate surpassing a $4 trillion market capitalization earlier this week, characterize a turnaround.
This story is growing.