Apple’s iPhone Sales Forecast: Growth & AI Catch-Up

Apple forecasts dual-digit iPhone sales growth and 10-12% overall income increase, beating analyst estimates. Focus shifts to AI features and managing US-China trade tensions.

In an interview with Reuters, Cook said he expects iPhone sales in the existing, holiday-focused quarter to grow by dual digits year over year and Apple’s total income to expand 10-12% year over year. Those forecasts for Apple’s fiscal first quarter of 2026 beat analyst estimates of iPhone sales rising 9.8% to $75.91 billion and overall sales up 6.6% to $132.53 billion, according to data from LSEG.

Strong iPhone Sales Forecast

Apple’s dependence on hardware sales has actually additionally left it with greater direct exposure to Head of state Trump’s profession battle with China. Last quarter, Apple told investors to expect $1.1 billion in tariff-related costs, though the company has formerly beaten its very own quotes, with costs coming in lower than feared.

Among the “Wonderful 7” technology stocks, Apple’s share gains have actually tracked those of its rivals this year as financiers wait to see whether it can catch up with expert system features. The business has stated its largest updates to Siri, its digital aide, will come next year, and Prepare told Reuters that Apple is “making good progress” on those upgrades.

AI Development Progress

The expectation comes as Cook said the business had a hard time to meet demand for several apple iphone 17 designs and some older apple iphone 16 designs throughout its just-ended monetary 4th quarter. The firm additionally dealt with delays in China launching its apple iphone Air model, the thinnest it has actually ever before developed and its largest apple iphone layout overhaul in years.

Sales and earnings for the quarter ended Sept. 27 were $102.47 billion and $1.85 per share, compared with expert expectations of $102.26 billion and $1.77 per share, according to LSEG information. Sales of the Cupertino, California, firm’s apple iphone were $49.03 billion, compared with expectations of $50.19 billion, according to LSEG information.

Apple’s fiscal fourth quarter is generally its slowest sales duration as consumers wind down acquiring older apple iphone designs and wait for the launch of new ones. Apple’s new versions started shipping to many markets on September 19, so the quarter consists of just limited sales from the recently introduced gadgets.

Supply Chain and Launch Delays

The results showed that the most significant threats many investors attended Apple’s business– its exposure to US-China profession tensions and its lag in presenting AI features– played a smaller sized function than the complexity of structure and shipping numerous countless tools.

Nonetheless, the apple iphone Air did not ship to China till October 22 due to regulatory hold-ups as a result of its inclusion of just an e-SIM card for cordless connection. Apple said sales in its Greater China area were $14.49 billion, compared with expert quotes of $16.24 billion, according to data from Noticeable Alpha.

Regional Performance and Analysis

“My expectation is that apple iphone Air sales are most likely weak, but apple iphone base and Pro versions are stronger than assumptions,” said Ryuta Makino, study analyst at Gabelli Funds. Makino added that “Assistance (was) much better than expectation. 10 to 12 percent growth is solid.”

Apple said sales in its services segment, which consists of Apple television and its flick business, were $28.75 billion, compared with estimates of $28.17 billion, according to LSEG data. Mac sales were $8.73 billion compared to price quotes of $8.59 billion, and iPad sales were $6.95 billion, compared to estimates of $6.98 billion.

The restrictions, in addition to delays in delivering new phones to China, led Apple to miss out on apple iphone sales forecasts in the monetary 4th quarter, although the shortfall was offseted by stamina in other locations such as brand-new AirPods that make use of AI to equate languages, and earnings topped Wall surface Street targets.