Apple Forecasts Strong Holiday Quarter as iPhone 17 Demand Surges Despite Supply Constraints

Apple CEO Tim Cook announced forecasts that exceeded Wall Street expectations, projecting double-digit growth in iPhone sales and a 10–12% rise in overall revenue for the holiday quarter. The upbeat outlook comes despite lingering supply constraints for iPhone 17 models and shipping delays in China, which affected fiscal fourth-quarter results.

Apple reported fourth-quarter revenue of $102.47 billion and earnings per share of $1.85, surpassing analyst estimates of $102.26 billion and $1.77. However, iPhone sales fell slightly short at $49.03 billion versus the expected $50.19 billion, mainly due to delayed shipments of the new iPhone Air to China. The Greater China region posted $14.49 billion in sales, missing the forecast of $16.24 billion. Cook attributed this to regulatory delays but expressed optimism for growth in the next quarter.

Despite challenges, Apple’s other business segments showed resilience. Services revenue climbed to $28.75 billion, surpassing expectations, while Mac and accessories sales also outperformed projections, driven by strong demand for new AI-powered AirPods and Apple Watches. Apple’s gross margins are expected to range from 47% to 48%, higher than Wall Street’s average estimate of 46.9%.

Investors responded positively, sending Apple shares up 3.7% in after-hours trading. Analysts said the company’s stronger-than-expected guidance reinforced confidence in its product lineup and market position. Research analyst Ryuta Makino noted that the base and Pro iPhone models outperformed expectations, compensating for weaker iPhone Air sales.

As Apple continues to face $1.4 billion in tariff-related costs and ongoing supply constraints, Cook emphasized the company’s commitment to innovation and AI integration. He said Apple is making “good progress” on next-generation Siri updates set for release next year, which could help close the AI gap with competitors.