Apple has offered a bullish outlook for the crucial holiday season after releasing new iPhones and reporting a record annual profit, buoyed by strong smartphone revenue.
The company CFO, Kevan Parekh, said during a call with analysts that the company expected its “best quarter ever” in the three months to December, with revenue expected to rise 10 to 12 per cent year-over-year and iPhone revenue to grow double digits, beating analysts’ expectations, who had predicted just 6 per cent growth on an average.
Total revenue climbed 8 per cent to $102.5 billion, the first time Apple made more than $100 billion during the three months that ended in September. Profit rose 86 per cent to $27.5 billion after its net income was hit a year ago by a tax payment.
“We grew in the vast majority of markets we track and had September quarter revenue records in dozens of markets, including the US, Canada, Latin America, Western Europe, West Asia, Japan, Korea and South Asia. We also set a September quarter revenue record in emerging markets and an all-time revenue record in India,” said CEO Tim Cook.
In September, Apple released the iPhone 17 series and introduced a new ultra-thin model called iPhone Air. The iPhone accounts for about half of Apple’s revenue, making its upgrade cycle a significant driver of its business. The quarter included roughly two weeks of iPhone 17 availability, with initial demand appearing strong.
“iPhone revenue was $49 billion, up 6 per cent year-over-year, driven by the iPhone 16 family. iPhone grew in the vast majority of the markets we track, with September quarter records in many emerging markets, including Latin America, West Asia, South Asia and an all-time record in India. The iPhone active installed base grew to an all-time high and we set a September quarter record for upgraders,” said Parekh.
Apple’s market capitalisation hit $4 trillion earlier this week, while its share price is up more than 30 per cent since August, after it took a beating in April when US President Donald Trump launched a global trade war that threatened Apple’s supply chain.