Apple sees surge in iPhone 17 demand and record revenue

American technology company Apple Inc. reported record sales for the last quarter and predicted strong growth during the holiday season, as customers rush to buy the new iPhone 17, The Wall Street Journal reports.

Chief Financial Officer Kevan Parekh said the company’s total revenue is expected to grow by 10–12% in the final quarter of the year — well above Wall Street analysts’ forecasts of 6%, CE Report quotes BTA.

He attributed this surge mainly to a “double-digit increase” in iPhone sales compared with the same period last year.

iPhone sales revenue reached $49 billion in the quarter ending in September, slightly below expectations, with Parekh citing supply challenges for certain models. Despite this, Apple shares rose more than 4% in after-hours trading.

Total quarterly revenue reached $102.5 billion, up about 8% year over year, slightly exceeding the $102.2 billion forecast. After years of slowing growth, this marks the second consecutive quarter of rising iPhone sales.

According to independent research firm Consumer Intelligence Research Partners, demand was particularly strong for the iPhone 17 Pro and Pro Max models, while the iPhone 17 Air saw limited interest.

Parekh declined to comment specifically on Air model sales but confirmed that supply constraints during the quarter affected both the iPhone 16 and iPhone 17 lines.

Despite record results, sales in China declined compared with the same period last year, as Apple continues to lose market share in the region amid growing competition.

The company achieved a major milestone in its services business, surpassing $100 billion in annual revenue for the first time in its history for the fiscal year ending in September.

This segment includes income from the App Store, payments from Google to remain the default search engine in Safari, and subscription services such as Apple Music and Apple TV+.

Because services carry higher profit margins than hardware, they have become a key driver of Apple’s profitability.

Apple also avoided a potential revenue hit after a court allowed Google to continue paying for its position as Safari’s default search provider. Analysts estimate that Google pays over $20 billion annually, accounting for roughly one-fifth of Apple’s operating profit.

Earlier Thursday, Apple received another boost when President Donald Trump announced a 50% reduction of the 20% tariffs on components imported from China, part of a preliminary trade deal between Washington and Beijing.

The tariff is the only one Apple currently pays on U.S.-imported products, as the Trump administration exempted the company from other duties in exchange for its commitment to invest in the American economy.

Apple reported $800 million in tariff-related costs during the quarter ending in June.

If the trade agreement is formalized, Apple could realize significant savings on imported iPhone 17 Pro and Pro Max models, still primarily produced in China. Production of older, lower-cost models has shifted to India, where the company is not subject to tariffs.