Apple is heading into the December quarter with remarkable momentum, driven by surging demand for its iPhone 17 lineup and record-breaking performance in its services and Mac divisions. Following its latest earnings report, the tech giant has outperformed Wall Street expectations and set a bullish forecast for the months ahead — signaling confidence that the holiday quarter could be the strongest in its history.

A Quarter That Surpassed Expectations

For the fiscal fourth quarter ending September 27, Apple reported earnings per share (EPS) of $1.85, surpassing analyst estimates of $1.77, and revenue of $102.47 billion, slightly ahead of projections. The company’s net income rose to $27.46 billion, compared with $14.29 billion a year ago — a sharp rebound partially attributed to the absence of last year’s one-time tax charge.

Apple’s CEO Tim Cook confirmed that the company expects total revenue to grow between 10% and 12% year-over-year in the December quarter. If achieved, that would bring quarterly revenue to roughly $138 billion, eclipsing both the company’s previous record and analyst forecasts of $132.3 billion.

“Our iPhone 17 lineup has exceeded every expectation,” said Cook in an interview. “Consumer demand has been off the charts, and store traffic is significantly up year-over-year. We’re entering this quarter with tremendous enthusiasm across all regions.”

The iPhone 17 Effect

The release of the iPhone 17 in September has been a major catalyst behind Apple’s renewed growth trajectory. Despite only being on sale for just over a week in the last quarter, iPhone revenue still hit $49.03 billion, up 6% from the previous year.

While that figure came in slightly below analysts’ $50.19 billion estimate, Apple cited supply constraints for several iPhone 17 models as the reason behind the gap. Cook noted that the company is ramping up production to meet global demand, particularly in the U.S., China, and Europe.

In Greater China, a key growth market for Apple, revenue slipped 4% to $14.5 billion, but Cook expressed optimism that iPhone 17’s popularity would drive a rebound in the December quarter.

Services Continue to Power Profitability

Apple’s services segment — which includes iCloud, Apple Music, the App Store, AppleCare, and Google search licensing deals — continues to be a major driver of growth. The division generated $28.75 billion in revenue, up 15% year-over-year, marking its fastest growth pace in nearly two years.

CFO Kevan Parekh said the company expects similar performance in the coming months, as subscription-based services become a more stable and recurring revenue source. Cook added that “nearly every component of the Services business is seeing accelerating growth.”

With over 1.1 billion paid subscriptions across Apple platforms, this segment now represents the company’s highest-margin business line, offsetting slower growth in hardware.

Hardware Highlights and Challenges

Apple’s Mac division grew 13% to $8.72 billion, helped by strong sales of the MacBook Air, which saw a price cut earlier this year to $999. The iPad segment remained flat at $6.95 billion, though a boost is expected in the next quarter following the October launch of a new iPad Pro featuring the M5 chip.

“Mac sales have been particularly impressive this quarter,” said Parekh, noting that the combination of affordability and performance upgrades helped Apple capture a larger share of the premium laptop market.

Meanwhile, the Other Products segment — which includes Apple Watch, AirPods, and Vision Pro — brought in $9.04 billion, reflecting a slight dip from the previous quarter.

Tariffs, Margins, and Future Outlook

Despite ongoing trade pressures, Apple confirmed it has not adjusted product pricing in response to U.S. tariffs. Instead, the company absorbed roughly $1.1 billion in additional costs during the September quarter, expecting that figure to rise to $1.4 billion in the next period.

Even with these costs, Apple’s gross margin rose to 47.2%, exceeding analyst expectations of 46.4%. The company expects margins to remain between 47% and 48% for the December quarter.

Cook also reaffirmed Apple’s commitment to AI and voice technology development, noting that an updated Siri will launch next year alongside expanded partnerships, including deeper integration with OpenAI’s ChatGPT as part of the company’s new Apple Intelligence initiative.

Looking Ahead

With record iPhone sales expected, strong subscription momentum, and resilient margins despite global cost pressures, Apple is on track to deliver one of the strongest December quarters in its history.

“We’re seeing unparalleled demand, unmatched enthusiasm, and record traffic globally,” said Cook. “This holiday season could very well set a new benchmark for Apple’s growth story.”

As investors respond to the upbeat forecast, Apple shares rose in after-hours trading, signaling renewed confidence that the tech giant’s growth story is far from over.