Apple has announced its latest financial results, with CEO Tim Cook stating significant global uptake for the new iPhone models. The company reported overall fourth-quarter revenue surpassing analyst estimates but iPhone revenue specifically fell slightly below projections. Apple anticipates a strong holiday season, forecasting revenue growth of up to 12% compared to the prior year, though it has incurred and expects further impact from tariffs.
Financial Performance Overview
Apple reported overall fourth-quarter revenue of $102.5 billion (£77 billion), marking an 8% increase from the previous year and exceeding analyst estimates. However, iPhone revenue for the quarter reached $49 billion (£37 billion), which was slightly below expectations.
Chief Financial Officer Kevan Parekh stated that if Apple meets its holiday season sales forecast, it would represent the company's "best quarter ever."
iPhone Sales and Demand
Apple unveiled the iPhone Air and upgraded iPhone 17 models in September. CEO Tim Cook indicated that these models have experienced a significant global response and that the iPhone Air contributed to customer interest and sales. Cook also expressed satisfaction with the performance in the Chinese market, citing a strong reception for the new iPhone 17.
Counterpoint, a technology market research firm, reported that the initial 10 days of iPhone 17 sales in the US and China increased by 14% compared to iPhone 16 sales during the same initial period.
Supply Chain and Tariffs
Cook attributed the slight miss in iPhone sales estimates for the fourth quarter to supply constraints for specific iPhone models and delayed shipments to China. He stated, "We're not predicting when the supply and demand will balance," adding, "We're obviously working very hard to achieve that, because we want to get as many of these products out to customers as possible." Cook emphasized that global demand for iPhone 16 and 17 models remains strong despite these constraints.
Apple manufactures many iPhones in China, exposing its global supply chain to potential trade disputes. The company incurred a $1.1 billion (£836 million) impact from tariffs in the recently concluded quarter. Cook projects an additional $1.4 billion impact from tariffs in the upcoming holiday quarter, attributed to tariffs imposed by US President Donald Trump.