Apple’s latest quarter delivered record September-quarter revenue, but the company’s tablet business moved in the opposite direction. iPad revenue fell roughly 10% year over year to $6.2 billion, even as Apple’s overall revenue climbed 12% to $114.5 billion for the fiscal quarter ended September 26.
For readers weighing Apple’s portable-computing lineup, the split is notable: Mac revenue rose about 24% to $10.8 billion while iPad sales declined. Apple did not provide a product-level explanation for the iPad result, so it remains unclear whether the drop reflects product timing, demand, or both.
iPhone and services carried the quarter
The company reported net income of $30.7 billion, or $2.10 per share, with both figures above analyst expectations. iPhone revenue accounted for just over half of total sales, rising about 17.5% to $57.6 billion, helped in part by demand for the iPhone 18 Pro lineup. Services also set an all-time record at $31.6 billion.
- iPhone: $57.6 billion, up about 17.5% year over year
- Services: $31.6 billion, up nearly 10%
- Mac: $10.8 billion, up about 24%
- iPad: $6.2 billion, down about 10%
- Wearables, Home and Accessories: $8.3 billion, down nearly 8%
Apple’s fiscal-year revenue reached $478.8 billion, up from $416.2 billion a year earlier, marking a company record. The quarter was also the first reported under new CEO John Ternus.
A foldable iPhone and tighter margins are still ahead
The newly launched iPhone Duo did not contribute to the reported quarter because it reached stores after the September 26 cutoff. Ternus said Apple cannot currently meet demand for the foldable and does not know when supply will catch up with orders. He also said only a very small share of units had been returned over display problems, with those devices being replaced. Reports of cracked displays around the fold have surfaced, but the dossier provides no evidence of a widespread issue.
Apple forecasts 7% to 10% year-over-year revenue growth for the current holiday quarter, which would make it the company’s biggest quarter ever by revenue. The period will include the first iPhone Duo sales, making the next report more revealing for Apple’s foldable ambitions and the extent of supply constraints.
The company expects gross margin of 45% to 46%, below the 47.9% posted in the latest quarter. Apple cited higher memory prices and costs tied to the Siri AI launch. The prior quarter’s margin also benefited by about one percentage point from tariff refunds.
Apple has confirmed that price increases on some older iPhone models, including the iPhone 17, partly offset higher memory costs, which it expects to keep rising next year. Its services-growth outlook of 8% to 9% is also below the 10.7% forecast cited by Reuters. For tablet buyers, the immediate takeaway is less about a new iPad roadmap than Apple’s shifting cost environment: product pricing and upgrade timing will be important areas to watch as the company enters its biggest sales season.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
