Apple has reported “tremendous” global demand for its newest iPhones — the iPhone 17 series and the ultra-thin iPhone Air — as the tech giant shared its latest quarterly earnings results.
CEO Tim Cook said that despite minor supply constraints and shipment delays to China, Apple is entering the holiday season with its most powerful lineup ever, setting expectations for what could become the best quarter in Apple’s history.
Record Demand Ahead of the Festive Season
Unveiled in September at the Steve Jobs Theater, the iPhone 17 lineup and iPhone Air have driven strong consumer interest across global markets.
According to Apple, the company expects revenue growth of up to 12% during the Christmas and New Year period compared to the same time last year.
“The response to our new lineup has been tremendous,” said Cook. “We’re working hard to meet high demand as we prepare for a record-breaking holiday quarter.”
Quarterly Results Show Solid Growth
Apple posted $102.5 billion in total revenue for its fourth quarter ending in September — an 8% increase year-over-year, slightly exceeding analyst forecasts.
However, iPhone-specific revenue fell just short of expectations at $49 billion, which Cook attributed to temporary supply issues affecting several models.
Chief Financial Officer Kevan Parekh told investors that if Apple meets its holiday forecast, it will mark the company’s “best quarter ever.”
Strong Sales in the US and China
Market research firm Counterpoint reported that iPhone 17 sales in the first 10 days after launch rose 14% higher than those of the iPhone 16 in both the US and China.
Cook praised Apple’s performance in China, saying, “I couldn’t be more pleased with how things are going. The response to iPhone 17 has been incredibly strong.”
Tariffs and Trade Tensions Add Pressure
Despite the success, Apple continues to feel the effects of U.S.–China trade tensions. Cook confirmed that the company incurred a $1.1 billion hit from tariffs in the last quarter, with another $1.4 billion impact expected during the holiday period due to President Donald Trump’s trade policies.
Apple’s reliance on Chinese manufacturing keeps it exposed to global supply chain risks, though Cook noted that the firm is “working hard to balance supply and demand globally.”
Competition in the AI Era
Apple’s performance comes amid intensifying competition from Microsoft, Alphabet, and Amazon, all of whom are investing heavily in artificial intelligence (AI) and cloud computing.
Amazon’s recent earnings call highlighted a 20% jump in AWS revenue, its fastest growth since 2022. Meanwhile, Microsoft and Google have reaffirmed multi-billion-dollar AI spending plans — a signal of the industry-wide race to dominate next-gen computing.
As Apple leans on hardware innovation to drive growth, analysts say the company may soon need to expand its AI ecosystem to stay competitive in the long term.
Outlook
Despite global headwinds, Apple remains optimistic. With record-breaking demand for the iPhone 17 Pro and iPhone Air, a strong product portfolio, and continued global brand loyalty, the company is poised for a blockbuster holiday season — potentially its most profitable yet.
