Apple Forecasts Record-Breaking December Quarter as iPhone 17 Demand Surges
Apple has reported stronger-than-expected fiscal fourth-quarter results, setting the stage for what could be its most successful December quarter in history — powered by exceptional demand for the newly launched iPhone 17 lineup.
The company’s shares rose in after-hours trading following the announcement, as Apple’s forecast surpassed market expectations and highlighted solid performance across several product categories.
Here’s how Apple performed compared to analyst estimates for the quarter ending September 27:
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Earnings per Share (EPS): $1.85 vs. $1.77 expected
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Revenue: $102.47 billion vs. $102.24 billion expected
Business segment performance:
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iPhone Revenue: $49.03 billion vs. $50.19 billion estimated
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Mac Revenue: $8.73 billion vs. $8.59 billion estimated
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iPad Revenue: $6.95 billion vs. $6.98 billion estimated
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Other Products: $9.01 billion vs. $8.49 billion estimated
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Services: $28.75 billion vs. $28.17 billion estimated
Apple CEO Tim Cook said the company expects revenue in the December quarter to grow by 10–12% year-over-year, making it the best quarter in Apple’s history.
“We expect total company revenue to grow by double digits, driven by strong iPhone demand,” Cook said. “Consumer response to the new iPhone lineup has been off the charts, and store traffic is significantly higher than last year.”
Market analysts project Apple’s December-quarter revenue at $132.31 billion and earnings of $2.53 per share. However, Apple’s guidance exceeds these projections — pointing to potential revenue of $137.97 billion, reflecting 11% year-over-year growth.
The company reported $27.46 billion in net income, a significant rise from $14.29 billion a year earlier, which had been affected by a one-time tax adjustment.
For fiscal 2025, Apple achieved $416 billion in total revenue, marking a 6% increase from 2024. Sales for the September quarter grew 8% year-over-year, largely driven by the iPhone 17’s early success.
Although iPhone sales came in slightly below analyst estimates, Apple noted that several iPhone 17 and iPhone 16 models were supply constrained during the quarter.
“We’re currently limited on availability for several iPhone 17 models,” Cook added.
The iPad segment remained stable with $6.95 billion in sales. While no new model was launched during the quarter, Apple introduced a new iPad Pro featuring the M5 chip in October, expected to boost upcoming results.
Meanwhile, Apple’s Services division, which includes iCloud, Apple Music, App Store, and AppleCare, rose 15% to $24.97 billion. This segment continues to be Apple’s fastest-growing business, contributing recurring revenue with higher profit margins than hardware.
“Most components within our Services division showed accelerating growth,” Cook said. CFO Kevan Parekh confirmed that Apple expects similar momentum in the coming quarter.
The Other Products category — which includes the Apple Watch, AirPods, and Vision Pro — recorded a modest decline to $9.04 billion. However, Mac sales jumped 13% to $8.72 billion, driven by strong demand for the MacBook Air, which saw a price reduction to $999 earlier this year.
Sales in Greater China, including Hong Kong and Taiwan, fell 4% to $14.5 billion, but Cook expressed optimism:
“We expect China to return to growth next quarter, given the strong demand for the iPhone 17 series.”
Apple also reaffirmed plans to launch an upgraded Siri next year, integrating advanced AI features and expanding collaborations similar to its recent ChatGPT integration.
“Our goal is to integrate with more AI platforms over time,” Cook noted.
On tariffs, Apple’s CFO revealed that the company absorbed around $1.1 billion in additional costs in the September quarter and expects $1.4 billion in the next quarter, without adjusting product prices.
Apple’s gross margin reached 47.2%, surpassing expectations of 46.4%, demonstrating resilience despite higher costs.
