Apple sales top $100B despite missing iPhone – Business News
Apple Chief Executive Tim Cook on Thursday gave a forecast for vacation quarter iPhone sales and general income that beat Wall Street expectations, powered by orders for iPhone 17 fashions that the company is racing to satisfy amid persevering with provide constraints.
The constraints, in addition to delays in delivery new telephones to China, led Apple to overlook iPhone sales forecasts within the fiscal fourth quarter, though the shortfall was made up for by energy in different areas reminiscent of new AirPods that use AI to translate languages, and revenue topped Wall Street targets.
Apple shares rose 3.8% in after-hours trading on Thursday.
Chief Executive Tim Cook on Thursday gave a forecast for vacation quarter iPhone sales and general income that beat Wall Street expectations Shares rose in after-hours trading. AFP by way of Getty Images
The outcomes confirmed that the most important dangers many buyers noticed to Apple’s business – its publicity to US-China commerce tensions and its lag in rolling out AI options – performed a smaller function than the complexity of building and delivery lots of of tens of millions of gadgets.
In an interview with Reuters, Cook mentioned he expects iPhone sales within the present, holiday-focused quarter to grow by double digits yr over yr and Apple’s general income to grow 10-12% yr over yr. Those forecasts for Apple’s fiscal first quarter of 2026 beat analyst estimates of iPhone sales rising 9.8% to $75.91 billion and complete sales up 6.6% to $132.53 billion, in line with information from LSEG.
The outlook comes as Cook mentioned the company struggled to satisfy demand for a number of iPhone 17 fashions and a few older iPhone 16 fashions during its just-ended fiscal fourth quarter. The company additionally confronted delays in China launching its iPhone Air model, the thinnest it has ever created and its largest iPhone design overhaul in years.
Cook advised Reuters that the China delay was the “primary reason” that sales contracted there during the fiscal fourth quarter.
“However, we’re very enthusiastic about China,” he mentioned. “We love the response to the new products there, and we expect to grow or to return to growth in Q1.”
Despite missing iPhone sales estimates, sales and revenue for the quarter ended Sept. 27 have been $102.47 billion and $1.85 per share, beating analysts’ forecasts. Robert Miller
Cook mentioned Apple remains to be working to resolve some of the provision constraints.
“Currently in Q1, we’re experiencing supply constraints still on several models of the iPhone 17, and we’re filling orders just as fast as we can,” Cook mentioned. “It’s a good problem to have.”
Among the “Magnificent Seven” tech shares, Apple’s share beneficial properties have trailed these of its rivals this yr as buyers wait to see whether or not it will probably catch up with artificial intelligence options. The company has mentioned its largest updates to Siri, its digital assistant, will come subsequent yr, and Cook advised Reuters that Apple is “making good progress” on these upgrades.
Despite missing iPhone sales estimates, sales and revenue for the quarter ended Sept. 27 have been $102.47 billion and $1.85 per share, beating analysts’ forecasts. Bloomberg by way of Getty Images
Apple’s reliance on {hardware} sales has additionally left it with larger publicity to President Trump’s commerce conflict with China. Last quarter, Apple advised buyers to anticipate $1.1 billion in tariff-related prices, although the company has beforehand overwhelmed its own estimates, with prices coming in decrease than feared.
But Apple is hoping that its new iPhone Air – a potential precursor to a folding telephone – together with more highly effective iPhone Pro fashions and improved base iPhone fashions – will increase sales.
Apple’s fiscal fourth quarter is often its slowest sales period as customers wind down shopping for older iPhone fashions and await the launch of new ones. Apple’s new fashions started delivery to most markets on September 19, so the quarter consists of solely restricted sales from the just lately launched gadgets.
Sales and revenue for the quarter ended Sept. 27 have been $102.47 billion and $1.85 per share, in contrast with analyst expectations of $102.26 billion and $1.77 per share, in line with LSEG information. Sales of the Cupertino, California, company’s iPhone have been $49.03 billion, in contrast with expectations of $50.19 billion, in line with LSEG information.
Cook mentioned he expects iPhone sales within the present, holiday-focused quarter to grow by double digits yr over yr and Apple’s general income to grow 10-12% yr over yr. Robert Miller
“My expectation is that iPhone Air sales are likely weak, but iPhone base and Pro models are stronger than expectations,” mentioned Ryuta Makino, analysis analyst at Gabelli Funds. Makino added that “Guidance (was) better than expectation. Ten to 12 percent growth is strong.”
However, the iPhone Air didn’t ship to China till October 22 as a result of of regulatory delays because of its inclusion of solely an e-SIM card for wi-fi connectivity. Apple mentioned sales in its Greater China area have been $14.49 billion, in contrast with analyst estimates of $16.24 billion, in line with information from Visible Alpha.
Apple mentioned sales in its providers phase, which comprises Apple TV and its film business, have been $28.75 billion, in contrast with estimates of $28.17 billion, in line with LSEG information. Mac sales have been $8.73 billion in contrast with estimates of $8.59 billion, and iPad sales have been $6.95 billion, in contrast with estimates of $6.98 billion.
Sales in Apple’s equipment business, which comprises AirPods and Apple Watch gadgets, have been $9.01 billion, in contrast with estimates of $8.49 billion, in line with LSEG information.
