Apple sales top $100B despite missing iPhone forecasts | Latest Tech News
Apple Chief Executive Tim Cook on Thursday gave a forecast for vacation quarter iPhone sales and total income that beat Wall Street expectations, powered by orders for iPhone 17 fashions that the company is racing to fulfill amid persevering with provide constraints.
The constraints, as properly as delays in transport new telephones to China, led Apple to miss iPhone sales forecasts in the fiscal fourth quarter, although the shortfall was made up for by strength in other areas such as 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 total income that beat Wall Street expectations Shares rose in after-hours trading. AFP via Getty Images
The outcomes confirmed that the most important dangers many traders noticed to Apple’s business – its publicity to US-China commerce tensions and its lag in rolling out AI options – performed a smaller position than the complexity of building and transport a whole lot of thousands and thousands of devices.
In an interview with GWN, Cook said he expects iPhone sales in the current, holiday-focused quarter to grow by double digits 12 months over 12 months and Apple’s total income to grow 10-12% 12 months over 12 months. Those forecasts for Apple’s fiscal first quarter of 2026 beat analyst estimates of iPhone sales rising 9.8% to $75.91 billion and whole sales up 6.6% to $132.53 billion, according to data from LSEG.
The outlook comes as Cook said the company struggled to meet demand for a number of iPhone 17 fashions and some older iPhone 16 fashions during its just-ended fiscal fourth quarter. The company also confronted delays in China launching its iPhone Air model, the thinnest it has ever created and its largest iPhone design overhaul in years.
Cook told GWN 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 said. “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 had been $102.47 billion and $1.85 per share, beating analysts’ forecasts. Robert Miller
Cook said Apple is still 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 said. “It’s a good problem to have.”
Among the “Magnificent Seven” tech shares, Apple’s share good points have trailed those of its rivals this 12 months as traders wait to see whether or not it may possibly catch up with artificial intelligence options. The company has said its largest updates to Siri, its digital assistant, will come next 12 months, and Cook told GWN that Apple is “making good progress” on those upgrades.
Despite missing iPhone sales estimates, sales and revenue for the quarter ended Sept. 27 had been $102.47 billion and $1.85 per share, beating analysts’ forecasts. Bloomberg via Getty Images
Apple’s reliance on {hardware} sales has also left it with larger publicity to President Trump’s commerce struggle with China. Last quarter, Apple told traders to count on $1.1 billion in tariff-related prices, though 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 cellphone – along with more highly effective iPhone Pro fashions and improved base iPhone fashions – will increase sales.
Apple’s fiscal fourth quarter is usually 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 transport to most markets on September 19, so the quarter consists of only restricted sales from the lately launched devices.
Sales and revenue for the quarter ended Sept. 27 had been $102.47 billion and $1.85 per share, in contrast with analyst expectations of $102.26 billion and $1.77 per share, according to LSEG data. Sales of the Cupertino, California, company’s iPhone had been $49.03 billion, in contrast with expectations of $50.19 billion, according to LSEG data.
Cook said he expects iPhone sales in the current, holiday-focused quarter to grow by double digits 12 months over 12 months and Apple’s total income to grow 10-12% 12 months over 12 months. Robert Miller
“My expectation is that iPhone Air sales are likely weak, but iPhone base and Pro models are stronger than expectations,” said Ryuta Makino, research 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 until October 22 because of regulatory delays due to its inclusion of only an e-SIM card for wi-fi connectivity. Apple said sales in its Greater China area had been $14.49 billion, in contrast with analyst estimates of $16.24 billion, according to data from Visible Alpha.
Apple said sales in its companies section, which accommodates Apple TV and its film business, had been $28.75 billion, in contrast with estimates of $28.17 billion, according to LSEG data. Mac sales had been $8.73 billion in contrast with estimates of $8.59 billion, and iPad sales had been $6.95 billion, in contrast with estimates of $6.98 billion.
Sales in Apple’s equipment business, which accommodates AirPods and Apple Watch devices, had been $9.01 billion, in contrast with estimates of $8.49 billion, according to LSEG data.
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