Apple just provided its first glimpse at how iPhone 17 sales are going

By Lisa Eadicicco, CNN

(CNN) — Apple reported fourth-quarter earnings on Thursday that provided an early glimpse into how the iPhone 17 lineup may be catching on so far.

Apple’s earnings for the quarter that ended in September met analysts’ expectations on revenue but slightly missed on iPhone sales. iPhone sales in the fourth quarter were $49 billion, up from $46.2 billion compared to the same period a year ago but slightly lower than the $50.1 billion Wall Street was expecting. Overall revenue was $102.5 billion, an increase from $94.9 billion a year ago.

Apple says both revenue and iPhone sales numbers represent a record for the fourth quarter. Services revenue, another closely watched metric, also hit an all-time record at $28.8 billion, an increase from roughly $25 billion a year ago.

During Apple’s earnings call on Thursday, CEO Tim Cook said the company expects the December quarter’s revenue “to be the best ever for the company and the best ever for the iPhone,” suggesting strong iPhone 17 sales.

Apple shares were up around 3% in after-hours trading.

Wall Street is looking for assurance that Apple’s biggest revenue driver is still growing despite concerns that the company is behind in the AI race. Analysts had estimated strong demand for the iPhone 17 lineup, which Apple launched in late September.

However, overall sales in China shrunk compared to a year ago, with the company generating $14.5 billion in revenue in the region. In 2024, Apple earned $15 billion during the same period. Cook said on Thursday that he expects iPhone revenue to return to growth in China in the current quarter based on how the iPhone 17 is being received.

Thursday’s results paint an early picture of iPhone sales since its fourth quarter ended on September 27, eight days after the iPhone 17 launch. Still, it’s possible that sales slowed in the July and August months as consumers waited for the iPhone 17.

The iPhone 17 series outsold its predecessor by 14% in its first 10 days in the United States and China, according to Counterpoint Research, with the base iPhone 17 and iPhone 17 Pro Max being the most in demand. The iPhone Air, touted as the thinnest iPhone ever, is seeing “muted customer interest” according to UBS, which has been tracking retail wait times for new iPhones.

Apple’s iPhone business is always under a microscope as the company’s largest revenue driver. But the tech industry is particularly paying close attention, prompted by speculation that another AI-powered gadget may eventually supplant the smartphone.

While analysts previously grilled Apple about its AI strategy on recent earnings calls, Wall Street was more interested in the factors driving iPhone demand and the impact of tariffs. Apple said it expects to incur $1.4 billion in tariff-related costs this quarter.

But Cook said he sees “opportunities on the App Store” for AI when asked about whether the rise of chatbots and AI apps will change how consumers use apps. He also said Apple Intelligence — a suite of AI-powered features for the iPhone and the company’s other products — is motivating people to upgrade their iPhones.

“I would say that Apple Intelligence is a factor, and we’re very bullish on it becoming a greater factor, and that’s the way that we look at it,” he said.

Apple delayed an update to Siri earlier this year that would have brought it closer to OpenAI’s ChatGPT and Google’s Gemini. Rivals like Google, Microsoft and Samsung, meanwhile, continue to pour billions into their AI infrastructure.

The earnings come in what has been a challenging year for Apple.

The company has been impacted by President Donald Trump’s trade war and has faced pressure from the Trump administration to make its iPhones domestically. Earlier this year it committed to investing $600 billion toward expanding its US operations. But Thursday’s earnings, along with the company surpassing a $4 trillion market capitalization earlier this week, represent a turnaround.

This story has been updated.

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.