Apple’s latest earnings report offers a first look at how the iPhone 17 is performing since its September launch, revealing solid revenue growth alongside slightly underwhelming iPhone sales.
For the quarter ending in September, the company posted total revenue of $102.5 billion, up from $94.9 billion in the same period last year. iPhone sales reached $49 billion, a rise from $46.2 billion, though below Wall Street’s projection of $50.1 billion.
The company said both revenue and iPhone figures mark records for a fourth quarter. Services revenue, an area of growing importance for Apple, hit $28.8 billion, climbing from about $25 billion a year ago.
During the earnings call on Thursday, CEO Tim Cook noted the outlook for the December quarter: “We expect it to be the best ever for the company and the best ever for the iPhone,” signaling optimism for continued strong demand for the iPhone 17. Apple shares gained roughly 3% in after-hours trading following the announcement.
Sales in China, however, showed a year-on-year decline. Revenue in the region totaled $14.5 billion, down from $15 billion in 2024. Cook expressed confidence that iPhone revenue in China will return to growth this quarter, citing the early response to the iPhone 17.
The results cover a period that ended just eight days after the iPhone 17 launch, meaning much of the quarter’s sales occurred before the new model became widely available. Analysts suggest that some customers delayed purchases in July and August while waiting for the iPhone 17.
Counterpoint Research reports that in the first ten days, the iPhone 17 series sold 14% more than the previous generation in the US and China, with the base iPhone 17 and iPhone 17 Pro Max leading demand.
The iPhone Air, described as the thinnest iPhone ever, has seen “muted customer interest,” according to UBS, which tracks retail wait times.
Apple’s iPhone performance remains a focus as the company navigates a tech landscape increasingly shaped by AI. While AI strategy was a recurring topic in previous earnings calls, this time analysts concentrated on iPhone demand and tariff impacts.
Apple expects to absorb $1.4 billion in tariff-related costs this quarter.
Cook emphasized AI’s role in the App Store, saying, “I would say that Apple Intelligence is a factor, and we’re very bullish on it becoming a greater factor, and that’s the way that we look at it.” Apple Intelligence, a set of AI-powered tools for iPhones and other Apple devices, is encouraging upgrades.
Earlier delays to Siri updates left Apple trailing competitors like Google, Microsoft, and Samsung, which continue to invest heavily in AI technologies.
Despite challenges including trade tensions and pressure to assemble iPhones domestically, Apple’s recent earnings reflect recovery momentum. Earlier this year, the company pledged $600 billion to expand US operations.
Coupled with surpassing a $4 trillion market value, Thursday’s results underscore Apple’s resilience in a complex global market.
