Apple Posts Record iPhone Sales; Achieves Most Profitable Quarter

Apple has reported its strongest quarter ever, with profits rising 16 per cent year-on-year to $42.1 billion for the three months ending in December.

Revenue also climbed nearly 16 per cent to $143.8 billion, marking the company’s largest quarterly growth since 2021.

The surge was driven primarily by the iPhone, which generated $85.3 billion in revenue, up 23 per cent compared with the same period last year.

In September, Apple introduced redesigned iPhones: the slim iPhone Air and an updated iPhone Pro, which features a raised bump across its back.

Strategic price increases of up to $100, combined with robust holiday spending, continued to lift iPhone sales.

CEO Tim Cook noted that the ‘staggering level of demand’ had constrained inventory, making it difficult to predict when supply and demand would balance.

The new iPhone models also performed strongly in China, where Apple accounted for 22 per cent of smartphone shipments in the quarter, surpassing local competitors.

Sales in the region rose 38 per cent to $25.5 billion. CFO Kevan Parekh stated that “the iPhone 17 family resonated with consumers in China, exceeding our expectations.”

Apple’s services segment, including the App Store and Apple Music, contributed $30 billion in revenue, up nearly 14 per cent.

iPad sales rose 6 per cent to $8.6 billion, while sales of wearables, including the Apple Watch and AirPods, and Macs showed slower growth.

The company continues to navigate trade challenges and tariffs, particularly in China, where it expects to pay approximately $1.4 billion this quarter.

Meanwhile, Apple’s measured approach to artificial intelligence includes collaboration with Google to enhance Siri and other AI features, positioning the company strategically amid global technological competition.

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