Apple is expected to reveal three-month sales growth of more than 10 percent, the steepest in two years buoyed by iPhone sales in China. When the company is a few weeks short of its fiscal fourth quarter, researchers expect sales to have been boosted by the release of the iPhone 16 series as an endorsement of the product.
Apple's Golden Quarter iPhone Sales in China Spark Revenue Revival
Everyone is waiting for the numbers as they reflect initial signs of new iPhone 16 series that just went on sale a few weeks before the fiscal quarter ended. The reaction from the largest market in the world – Chinese – which shows an overwhelming love for all the flagship Apple devices, is the most decisive for the total revenue.
However, as Apple is about to release its numbers for the quartermly results, focus will also shift to the executives’ outlook comment on the first fiscal quarter. Some analysts are beginning to worry that the company’s slow rollout of its Apple Intelligence features might disrupt the expected AI-fueled ‘super-cycle’ that could drive iPhone sales.
As for Android, Apple also faces increased competitive pressure from manufacturers such as Samsung, which quickly expand their AI developments. The strong positions of the tech giant will depend on its ability to be a prosperous competitor in the new environment of AI applications.
More specifically, the coming report may present a crucial turning point for Apple: in addition to an assessment of the company’s financial health, the report may also prove an evaluation of Apple’s strategic course in a world of rivals.
The Strength of the iPhone 16 Cycle Key to Apple’s Future
As the holiday season approaches, this is the first time the iPhone 16 cycle has become a big question mark for Apple. These dynamics are important to note, as well as, Bernstein analyst Toni Sacconaghi stressed, for the December quarter and financial year 2025. Despite the possible rosy view to concerns iPhone 16 sales and the new Apple Intelligence features, it is still rather unpredictable how these elements will affect the company in the future.
While the public slowly figured out the existence of Apple Intelligence, Apple’s test of selling the option to a few American iPhone 16 users only started this week. This cautious approach however gives rise to questions as to how well the new features can acquire this traction, notably given the fact that those are not available in certain major markets inclusive of Europe and China. These are the essential markets for Apple, and considering rivals such as Huawei are_NOP closer to matching its output, the pressure on Apple is mounting in these regions.
Lack of Apple Intelligence market can definitely make customers reluctant and might force them to wait for devices and not strictly during the holiday season. This change may slow down the sales increase that was expected from the application of AI capacities, which will cause concerns among investors regarding specific periods of Apple’s operations.
However, analysts expect iPhone sales to rise a little better in the September quarter by 3.8%, which would be a better trend after two quarters of decline. This could be in line with a revival of consumer interest or the firm awaiting the iPhone 16 cycle; though the latter remains under observation.
Consequently, the future Apple will depend on the iPhone 16 and the involvement of artificial intelligence in the near future. For the investor and industry analyst, the script is set to play out as Apple ushers itself into trying to rediscover the lost steam.
Apple's Promising Revenue Outlook Amidst Challenges
Apple is forecasted to report 5.7% overall year-on-year revenue growth for its fiscal fourth quarter, which includes the July-September period, LSEG data show. This increase is supported by 6.6% increase in revenue in Greater China which shows the company continues to remain strong in a significant market. Analyses suggest that some of the iPhone 16 versions, such as the iPhone 16 Plus to be sold on Pinduoduo before the official launch, added this positive sentiment.
Leveraging on iPhone 16 series sales, it confirmed its position of the second-largest smartphone manufacturer in China for the quarter ending September, according to IDC. This performance is driven by the sound pricing policies as well as the popularity of its current products within this market despite intense competition from local players.
Besides iPhones, iPad sales are expected to increase by 10.1% to $7.09 billion and that is after rising by 23.7% in the preceding quarter. New and powerful models of tablets have been relevant to this growth and show there is a good market for Apple tablets.
The services segment, which contains the App Store, is expected to see 13.3% higher sales but slightly slower than in the previous quarter. However, the services business is still emerging and is currently exposed to more rigour given that EU regulators accused Apple of violating technology standards earlier this year.
And, further complicating Apple’s finances, the fourth quarter results will be dragged down by a one-off $10 billion income tax charge resulting from a recent European Court of Justice ruling on the company’s taxes in Ireland. All the same, the Macroeconomic Daylight charts an optimistic status in overall revenues as Apple steers through these issues, translating to the firm’s adaptability in a highly competitive market.
