SAN FRANCISCO (AP) — Apple delivered financial results during its summer quarter that exceeded analysts’ projections, despite being caught in the crosshairs of a global trade war as the trendsetting company struggles to catch up with its Big Tech peers in the artificial intelligence race.
The performance announced Thursday was largely driven by strong initial demand for its iPhone 17 line that went on sale last month.
Although the iPhone 17 lacks the AI magic of rival devices recently introduced by Samsung and Google, Apple spruced up its latest models with a redesign highlighted by a sleek “liquid glass” look on the screens.
Apple also largely held up prices for its latest iPhones, despite coming under pressure from tariffs that President Donald Trump has imposed on American devices that the company mainly manufactures in India and China. The tariffs cost Apple $1.1 billion during the last quarter and are expected to cost it another $1.4 billion during the last three months of the year.
The formula was apparently 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 over the same period last year. That was slightly below the 8% increase in iPhone sales that analysts had anticipated, and less than the 13% increase in sales during the April-June period.
IDC estimates that 58.6 million iPhones were sold worldwide in the July-September quarter, putting Apple in second place behind Samsung with 61.4 million of its Android phones sold worldwide during the quarter.
Boosted by iPhone results, Apple earned $27.5 billion, or $1.85 per share, nearly doubling its earnings from a year ago. Revenue rose 8% from a year earlier to $102.5 billion. Both earnings and revenue eclipsed the forecasts of the analysts who guide the stock market.
Apple shares rose 3% in extended trading after the numbers came out.
In a conference call with analysts, Apple CEO Tim Cook indicated that he believes the iPhone 17 line will continue to do well and predicted that even more devices will be sold during the last three months of the year. “As we head into the holiday season with our most powerful lineup yet, I couldn’t be more excited for what’s to come,” Cook said. He cited the popularity of the iPhone 17 in most of the world except China, where sales of the device fell 4% from a year earlier.
The Cupertino, California company expects its iPhone sales to increase by at least 10% from last year’s holiday season, according to projections provided by Apple Chief Financial Officer Kevan Parekh. Total revenue is expected to increase at a similar pace.