Apple iPhone Sales Exceeded Expectations

Apple's Quarterly Results Surpass Expectations

SAN FRANCISCO - Apple reported financial results for the summer quarter that surpassed analyst projections, despite experiencing a slowdown in the growth of iPhone sales. The company continues its fierce competition with major technology rivals in the artificial intelligence race.

The announced performance was driven by strong demand for the recently launched premium model iPhone 17 series. While the iPhone 17 does not include the AI innovations featured in competing devices from Samsung and Google, the company's latest models have been revamped with a stunning 'liquid glass' design.

Apple largely maintained pricing on its latest iPhone models; this process has become even more challenging due to tariffs imposed during the Donald Trump administration on devices produced mostly in India and China. This approach has positively impacted consumers in the United States, leading to a total of iPhone sales reaching $49 billion in the July-September period. This represents a 6% increase compared to the same period last year. However, this was below analysts' expectations of an 8% increase and marked a decline compared to the 13% increase seen in the April-June period.

Due to the effects of iPhone results, Apple achieved a profit of $27.5 billion, or $1.85 per share, nearly doubling its earnings from the previous year. Revenue rose 8% year-over-year, reaching $102.5 billion. These earnings and revenue figures surpassed Wall Street forecasts, leading to about a 4% increase in Apple shares following the announcement.

Apple's shares had been on an upward trend since early this month after a report by International Data Corp. indicated improving earnings metrics and concluded that the company set a new record for iPhone sales in the July-September period. This rise has pushed Apple's market value above $4 trillion, with expectations for the shares to reach new highs in Friday's trading session.

However, Apple is seen as a latecomer in the artificial intelligence race. This situation is partly why Nvidia reached a $5 trillion market value this week. Apple had promised to introduce multiple AI features in last year's iPhone models; however, it could only deliver a few. Among the undeveloped features is a smarter and more versatile version of the often-baffling Siri virtual assistant; this issue has been postponed to the next year as part of a transformation Apple aims to complete.

Nonetheless, Apple has a history of being behind in technology shifts, ultimately proving its ability to surge ahead. If Apple can effectively implement more artificial intelligence features in its iPhone models, Dan Ives, an analyst at Wedbush Securities, forecasts that these advancements could increase the company's market value between $1 trillion and $1.5 trillion, which could lead to a share price increase between $75 and $100.