Summary
Apple announced that its latest iPhones have been well received globally, despite missing previous sales estimates due to supply issues and shipping delays to China. Apple expects a strong holiday season with up to 12% higher revenue compared to last year. Tariffs imposed by the U.S. government impacted Apple's profits, adding additional costs.
Key Facts
- Apple released its thinnest iPhone, the Air, and upgraded iPhone 17 models in September.
- The company reported overall fourth-quarter revenue of $102.5 billion, which is an 8% increase from last year.
- iPhone sales specifically were slightly below expectations, reaching $49 billion due to supply and shipping issues.
- Tariffs imposed by the U.S. contributed to a $1.1 billion cost hit for Apple last quarter and are expected to add another $1.4 billion in the holiday quarter.
- Strong demand was observed for the new iPhones in both the U.S. and China, with sales up 14% in the first 10 days compared to the iPhone 16.
- Apple's chief financial officer believes if sales forecasts are met, it would be the company's best quarter ever.
- The release of new iPhone models is part of Apple's strategy to maintain strong sales amidst increasing competition, especially in AI and cloud computing sectors.
