Apple Shatters Critics’ Doubts with Unstoppable iPhone Demand and Record-Breaking Services Revenue!
Apple reported remarkable results for its fiscal fourth quarter, which ended on September 27, showcasing an impressive year-over-year revenue growth of 8%, reaching $102.47 billion. This figure surpassed analysts’ expectations, which had forecasted revenue of $102.26 billion. Earnings per share soared to $1.85, a staggering 91% increase from last year’s results, or 13% when adjusted for a one-time charge in the previous year. This also beat the consensus estimate of $1.77 per share, according to LSEG.
The company’s stock responded positively, climbing nearly 5% in after-hours trading to approximately $285 before settling around $278. After a rocky start to 2025, Apple shares have experienced a remarkable recovery, rising nearly 30% over the past three months and gaining over 8% for the year. Earlier this week, Apple also marked the milestone of joining the $4 trillion market cap club.
In addition to achieving records in sales, earnings, and operating cash flow for the September quarter, Apple’s services segment stood out, achieving an all-time revenue high across various regions. However, sales in Greater China dipped, largely attributed to supply chain constraints affecting iPhone availability. CEO Tim Cook expressed optimism about a return to growth in the region during the current quarter.
Apple’s consolidated gross profit margin exceeded management’s previous guidance, expanding sequentially by 70 basis points and nearly 100 basis points year-over-year, despite facing a $1.1 billion tariff headwind. Apple’s strategic focus on hardware and its expanding services portfolio positions it favorably against competitors like Samsung and Xiaomi, reinforcing a substantial competitive edge.
While iPhone sales grew by 6% to $49.03 billion, they fell short of expectations, a situation Cook clarified as stemming from supply limitations for iPhone 16 and 17 models amid robust demand. Looking ahead, Cook projected that the upcoming December quarter would be the best ever for Apple and the iPhone, driven by the strong demand for the new iPhone 17 and an ever-expanding installed base of active devices.
Overall, product revenue reached a record in the September quarter, propelled by growth in both iPhones and Macs, even as product sales fell slightly below expectations at $73.72 billion. The active device ecosystem set a new record as well, particularly in emerging markets where sales surged. Meanwhile, Mac sales climbed 12.7% to $8.73 billion, benefiting from a strong demand for the MacBook Air, and over half of Mac buyers were new to the product line.
Services revenue achieved an all-time high as well, increasing by 15% to $28.75 billion due to growth across numerous categories, including advertising and cloud services.
Looking toward the future, while Apple does not issue formal guidance, it is optimistic about the current quarter, anticipating revenue growth of 10% to 12% compared to the previous year, far exceeding Street expectations of 6%. This could result in record performance for the company. Gross margins are expected to range between 47% and 48%, while operating expenses are projected to fall between $18.1 billion and $18.5 billion as Apple invests in artificial intelligence initiatives.
As of the end of September 2025, Apple held $132 billion in cash and marketable securities, with a net cash position of $34 billion after accounting for debt. The company returned $24 billion to shareholders through dividends and share buybacks during the quarter, showcasing a commitment to value return amidst strong corporate performance.
This stellar performance cements Apple’s status as a leader in both hardware and software, positioning it favorably for future growth.
Original Source: https://www.cnbc.com/2025/10/30/apple-silences-its-critics-with-strong-iphone-demand-and-blowout-services-revenue.html
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Publish Date: 2025-10-31 06:43:00
