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Apple CEO Tim Cook has reported a “tremendous response” to the latest iPhones worldwide, coinciding with the release of the tech giant’s recent financial results.
The company’s September unveiling of the iPhone Air, its thinnest model to date, alongside upgraded iPhone 17 models, has proven highly successful for the firm.
Apple anticipates a strong performance during the upcoming Christmas and New Year period, forecasting overall revenue to increase by up to 12% compared to the same period last year.
However, the company narrowly missed estimates for iPhone sales in its fourth quarter, which concluded in September. Mr. Cook attributed this to supply constraints affecting several iPhone models, as well as delays in shipments to China.
Despite this, Mr. Cook stated during a call with analysts that Apple is entering the holiday season “with our most powerful lineup ever.”
The introduction of the iPhone Air has been instrumental in attracting customers and driving sales growth.
If Apple achieves its sales forecast for the holiday season, it would mark the company’s “best quarter ever,” according to chief financial officer Kevan Parekh, who addressed analysts on Thursday.
Apple reported total fourth-quarter revenue of $102.5 billion, exceeding analysts’ estimates and representing an 8% increase from the previous year. However, iPhone revenue specifically fell slightly short of expectations, reaching $49 billion.
Mr. Cook emphasized that global demand for the iPhone 16 and 17 models remains robust, despite the constraints that contributed to the sales shortfall in the recent quarter.
“We’re not predicting when the supply and demand will balance,” Mr. Cook stated. “We’re obviously working very hard to achieve that, because we want to get as many of these products out to customers as possible.”
Regarding the Chinese market, he expressed his satisfaction with the company’s performance, citing a strong reception to the new iPhone 17.
Data from Counterpoint, a technology market research firm, indicates that the first 10 days of iPhone 17 sales in the US and China were up 14% compared with sales of the iPhone 16.
The impact of former US President Donald Trump’s tariffs also continues to be a key consideration for Apple’s investors. The company manufactures many iPhones in China, and its global supply chain is vulnerable to trade disputes – although a recent meeting between Mr. Trump and President Xi raised hopes for a de-escalation of tensions.
Mr. Cook told analysts on Thursday that the company absorbed a $1.1 billion hit from tariffs in the recently concluded quarter. He anticipates that this impact will likely reach another $1.4 billion in the holiday quarter, as Mr. Trump imposes taxes on entities perceived as “unfavourable” to the US economy.
Amazon, which also reported quarterly results on Thursday, projected sales to land between $206 billion and $213 billion for the current quarter through December, largely in line with analysts’ expectations.
“We’re encouraged by the start of the peak season,” Brian Olsavsky, Amazon’s chief financial officer, told analysts.
Amazon also reported that revenue from Amazon Web Services (AWS), its cloud computing business, increased by 20% in the third quarter compared to the previous year, marking its fastest growth rate since 2022.
For investors, this AI-driven growth could provide reassurance as Apple faces intense competition in the race to dominate the artificial intelligence sector.
Apple’s stock performance has lagged behind that of rivals Microsoft and Alphabet, both of whom reaffirmed their commitment on Wednesday to spending big on the technology. These firms have reported even faster growth in their cloud computing businesses than Amazon.
“We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity,” Andy Jassy, Amazon’s chief executive, said in a statement.
The chair of the Science, Innovation and Technology Committee says “robust technical measures” could help reduce phone thefts.
Millions of UK app purchasers may be able to claim damages, but Apple says it will appeal
The Competition and Markets Authority says the tech giant dominates the smartphone market along with Google.
Consumer group Which? is taking tech giant Qualcomm to the Competition Appeal Tribunal in London on Monday.
It is the latest development in a privacy row which has pitted the UK against the tech giant and the Trump administration.
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