Apple's iPhone 17 Sales Record
Apple’s latest earnings report gave the world its first real look at how the new iPhone 17 lineup is performing—and the results are a mix of optimism and caution. The tech giant’s fourth-quarter figures released Thursday show solid revenue growth and record-breaking figures in several areas but also show that iPhone sales fell slightly short of Wall Street’s lofty expectations. However, investors don’t seem worried—Apple’s stock jumped nearly 3% in after-hours trading after the report.
For the quarter ending in September, Apple reported total revenue of $102.5 billion, up from $94.9 billion during the same period last year. This is a new record for the fourth quarter for the company. iPhone sales also reached new highs during the same period, rising to $49 billion from $46.2 billion the previous year, but just shy of the $50.1 billion analysts had predicted. Despite the small shortfall, CEO Tim Cook called it a strong performance and suggested the best may still be ahead.
Cook told investors during Thursday’s earnings call that Apple expects the upcoming December quarter to be “the best ever for the company and the best ever for the iPhone.” It’s a bold statement that signals strong demand for the new iPhone 17 series, which launched just eight days before the quarter ended. If Cook’s prediction comes true, Apple could be looking at one of its biggest holiday seasons ever.
Apple’s Services business, which encompasses the App Store, iCloud, Apple Music, among others, demonstrated significant growth. The company posted $28.8 billion in services revenue, up from nearly $25 billion a year earlier. This is an all-time record for Apple and shows how its ecosystem of digital subscriptions is expanding beyond hardware sales.
Still, not every region told the same story. Revenue in China, one of Apple’s most important markets, dropped to $14.5 billion from $15 billion last year. The decline comes amid increasing competition from local smartphone makers like Huawei and government pressure to buy domestic brands. However, Cook remained optimistic, saying early indicators suggest iPhone 17 demand in China is strong enough to drive growth in the next quarter.
Part of the decline in iPhone revenue may simply be due to timing. The iPhone 17 series launched on September 19, and Apple’s quarter ended just eight days later on September 27. This means that the majority of new phone sales will appear in next quarter’s report. In fact, analysts believe that many consumers delayed purchasing older iPhones during the summer months, instead waiting for the iPhone 17.
Early data suggest the strategy worked. According to Counterpoint Research, the iPhone 17 series sold 14% more than its predecessor during its first 10 days on the market in the United States and China. The base iPhone 17 and high-end iPhone 17 Pro Max are reportedly leading sales, while the new iPhone Air—the thinnest iPhone ever—is receiving a more modest response. Analysts at UBS saw “low customer interest” for the slimmer model based on shorter retail wait times.
The iPhone remains the center of Apple’s empire, generating the bulk of its revenue and driving demand for the rest of its products and services. But the industry’s focus has increasingly shifted toward artificial intelligence, where rivals like Google, Microsoft, and Samsung are investing heavily. Some investors worry that Apple is lagging behind in the AI race due to its lack of a clear strategy compared to competitors.
That’s why analysts listened attentively when Cook discussed AI on Thursday’s call. While Apple has refrained from rushing into AI hype, the company recently introduced “Apple Intelligence,” a suite of AI-powered features designed to enhance the iPhone, iPad, and Mac. Apple’s ecosystem directly incorporates these tools, which prioritize privacy, on-device processing, and user experience over ostentatious chatbots.
Asked whether AI would change the way people use the App Store and iPhones, Cook said the company sees “great opportunity” and that Apple Intelligence is already nudging customers to upgrade. “I would say Apple Intelligence is a factor, and we’re very excited about it becoming a bigger factor, and that’s how we look at it,” he said.
Apple has taken a more measured approach to AI than its competitors. Earlier this year, the company delayed a major Siri update that was expected to make the voice assistant more comparable to OpenAI’s ChatGPT or Google’s Gemini. Meanwhile, competitors are aggressively expanding their AI ecosystems, pouring billions of dollars into new data centers and software platforms. Despite this, Apple’s strategy of quietly but effectively integrating AI features into its core devices may prove to be a more sustainable path.
Beyond technology, Apple has also faced external challenges. The lingering effects of trade tensions between the United States and China have put pressure on the company to rethink its global supply chain. The Trump administration has pushed Apple to produce more of its devices domestically, and in response, Apple pledged earlier this year to invest $600 billion in expanding its US operations. The company is also expected to face $1.4 billion in tariff-related costs this quarter—expenses that could impact profit margins.
Even with those setbacks, Apple’s performance this year has been impressive. Earlier this week, the company’s market value exceeded $4 trillion for the first time, solidifying its position as one of the most valuable companies in history. That milestone, combined with Thursday’s earnings, shows that Apple’s long-term strategy—focused on steady innovation, customer loyalty, and expanding services—is paying off.
Apple’s story this quarter reflects a company in transition. It’s still riding the massive wave of iPhone success that has defined it for over a decade, but it’s also preparing for a new era where AI, services, and global supply chain stability will define its future. The iPhone 17 launch has shown strong early traction, the services business continues to grow, and even in markets where Apple faces challenges, optimism remains high.
As Wall Street digests these results, one thing is clear: Apple’s grip on the tech world isn’t loosening anytime soon. Whether it’s the promise of record-breaking holiday sales, the early buzz around Apple Intelligence, or its trillion-dollar dominance, the company continues to set the pace for the entire industry. The iPhone 17 lineup may not have blown past every expectation, but it’s off to a powerful start—and with the holidays ahead, Apple looks poised for another blockbuster finish to the year.