Apple posts record profits as iPhone sales surge worldwide
Apple posts record profits as iPhone sales surge worldwide
Apple reports its most profitable quarter ever, driven by premium iPhone sales and a rebound in China, signaling strong holiday demand and global resilience.
Apple reported its most profitable quarter ever, driven by record iPhone sales powered by higher-priced models and a rebound in demand in China. For the quarter ending in December, the company posted a net profit of $42.1 billion on revenue of $143.8 billion, marking the largest quarterly growth since 2021.
iPhone revenue reached $85.3 billion, rising 23% year over year, as the new iPhone 17 family captured holiday shoppers. The company described a ‘staggering’ level of demand that outpaced supply, leading to lean inventories and ongoing production challenges.
Apple rolled out redesigned iPhones in September, including a thinner iPhone Air and a revamped iPhone Pro with a raised back bump, and it raised prices on some models by about $100. The combination of design updates and strong holiday spending helped lift iPhone sales and overall profitability.
China was a bright spot, with iPhone shipments accounting for about 22% of smartphone shipments in the quarter and revenue in China rising 38% to $25.5 billion. The improvements followed years of weaker sales there, with executives highlighting robust enthusiasm for the iPhone 17 family.
Forecasts for the fiscal second quarter point to continued strength, with revenue growth expected to be in the 13% to 16% range. Operating expenses were guided at roughly $18.4-$18.7 billion, modestly higher than the first quarter as the company continues to invest in products and services amid ongoing supply challenges.
