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Apple gave a bullish outlook for its crucial holiday sales period and reported record annual profit on Thursday, powered by strong smartphone revenue from its latest iPhone 17 line-up.
Chief financial officer Kevan Parekh said Apple expected it best ever quarter in the three months to December, forecasting total revenue growth of 10 to 12 per cent year on year and iPhone revenue growing by double digits.
The forecast is higher than Wall Street estimates of 6 per cent revenue growth, which Parekh attributed to a “great start” for the iPhone 17 after its September launch.
The optimistic prediction suggests a fresh round of consumers upgrading their devices could be under way. The iPhone accounts for about half of Apple’s revenue, making its upgrade cycle a significant driver of its business.
Apple on Thursday reported a record $112bn in net income for the year to September, the end of its fiscal year, up by a fifth from the year before.
Revenue for the quarter to the end of September was $102.5bn, up 8 per cent year-on-year and above Wall Street expectations of $101.6bn according to Visible Alpha. The shares rose around 4 per cent in after-hours trading.
iPhone sales grew 6 per cent in the quarter from a year before, while Apple’s China revenue was down 4 per cent. Net income was better than forecast at $27.5bn, and earnings per share were $1.85.
Apple’s full-year revenue from services surpassed $100bn for the first time in its fiscal year. The high-margin division, which includes the App Store, iCloud and Apple Pay, continued strong growth despite global regulatory scrutiny over its tight control of its ecosystem.
The iPhone maker’s market capitalisation hit $4tn earlier this week. Its share price is up more than 30 per cent since August, after recovering from a knock in April when President Donald Trump launched a global trade war that threatened Apple’s vast supply chain.
Apple has been boosted by a stronger than expected launch of its iPhone 17. Early data from Counterpoint Research showed sales of the latest models outpacing last year’s iPhone 16 by 14 per cent in the US and China.
Thursday’s results will help overcome the concern of some analysts that a boost in device sales earlier this year was a temporary blip driven by consumers trying to shop before the US and China imposed tariffs on each other.
Earlier in the day the US said it had agreed to cut its 20 per cent “fentanyl” tariff on Chinese imports, which hit Apple earlier this year, to 10 per cent as part of a broader trade truce.
Apple has struggled to compete with Big Tech rivals in the race to offer sophisticated artificial intelligence products, with planned updates to its voice assistant Siri delayed and bugs forcing it to roll back a news summary feature.
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