Apple achieved a record-breaking quarter for iPhone sales even though it did not release a standard model during its recent product refresh. The company reported $57.58 billion in iPhone revenue, marking a 17 percent increase compared to the same period last year.
Revenue Growth and New Product Lineups
The revenue boost followed the September launch of the iPhone 18 lineup, featuring the higher-priced iPhone 18 Pro and Pro Max models, alongside price increases applied across older devices. Apple also introduced its first folding phone, the iPhone Duo, though preorder sales for this device were not factored into the current earnings report. Overall, Apple recorded a 12 percent overall revenue increase, reaching $114.5 billion.
Among individual divisions, the Mac business grew by 24 percent to $10.79 billion. The services division, encompassing App Store commissions alongside subscriptions for Apple TV and Apple Music, expanded to $31.57 billion. Conversely, iPad revenue dropped 10 percent year over year, generating $6.23 billion in sales.
Supply Chain Challenges and Recent Hardware Releases
Similar to other device manufacturers, Apple faced supply chain constraints and increasing memory costs, which drove price increases across its product ecosystem. Additionally, the company offered only a limited supply of iPhone Duos in stores at launch, with certain estimated shipment dates pushing into 2027. Apple CEO John Ternus explained in an interview with CNBC that the company experienced higher memory costs compared to the June quarter, which were partially offset by carrying inventory benefits and reduced expenses on non-memory components.
Over recent weeks, Apple has expanded its offerings into other product categories, entering the smart home market with its first smart home display, video doorbells, security cameras, and door locks developed alongside LG and Schneider Electric. Furthermore, the company revealed a MacBook Pro featuring a touchscreen, reversing a design direction previously rejected by its executives.
