SAN FRANCISCO (AP) — Apple delivered financial results during its summertime quarter that exceeded analyst projections, despite being caught in the crosshairs of a global trade war at the same time the trendsetting company is scrambling to catch up to its Big Tech peers in the artificial intelligence race.
The performance announced Thursday was driven largely by strong initial demand for its iPhone 17 lineup that went on sale last month.
Although the iPhone 17 lacks the AI wizardry featured in rival devices recently introduced by Samsung and Google, Apple spruced up its latest models with a redesign highlighted by a sleek “liquid glass” appearance on the display screens.
Apple also largely maintained its pricing on its latest iPhones, despite being squeezed by the tariffs that President Donald Trump has imposed on the U.S. devices that the company mostly makes in India and China. The tariffs cost Apple $1.1 billion during the past quarter and are expected to cost another $1.4 billion during the final three months of the year.
The formula apparently was enough to win over consumers, particularly in the United States and Europe, helping to produce iPhone sales totaling $49 billion during the July-September period, a 6% increase from the same time last year. That was slightly below the 8% jump in iPhone sales that had been anticipated by analysts, and less than the 13% bump in sales during the April-June period.
IDC estimates that 58.6 million iPhones were sold worldwide in the July-September quarter, putting Apple second behind Samsung at 61.4 million of their Android-powered phones sold worldwide in the quarter.
Buoyed by the iPhone results, Apple earned $27.5 billion, or $1.85 per share, nearly doubling its profit from a year ago. Revenue climbed 8% from a year ago to $102.5 billion. Both the earnings and revenue eclipsed the analyst forecasts that steer the stock market.
Apple shares surged 3% in extended trading after the numbers came out.
In a conference call with analysts, Apple CEO Tim Cook indicated his belief that the iPhone 17 lineup will continue to do well, predicting even more of the devices will be sold during the final three months of the year. “As we head into the holiday season with our most powerful lineup ever, I couldn’t be more excited for what’s to come,” Cook said. He cited the iPhone 17’s popularity in most parts of the world except China, where sales of the device dipped by 4% from a year ago.
The Cupertino, California, company expects its iPhone sales to increase at least 10% from last year’s holiday season, according to projections provided by Apple’s chief financial officer, Kevan Parekh. Total revenue is expected to rise at a similar rate.
