Apple earned $57.58 billion in iPhone revenue during its fourth quarter, marking a 17 percent increase from the previous year. The tech giant achieved this record-breaking performance despite omitting a standard model from its latest device lineup.
Apple posted fiscal fourth-quarter earnings that surpassed Wall Street expectations across nearly every major financial metric. Overall revenue reached $114.5 billion, representing a 12 percent year-over-year increase that outpaced the $102.19 billion consensus estimate.
Hardware segments showed divergent trajectories during the quarter. While iPad revenue declined 10 percent to $6.23 billion, the Mac business expanded 24 percent to $10.79 billion. Meanwhile, the services division reached an all-time high of $31.57 billion, climbing roughly 15 percent from the prior year and accounting for more than a quarter of total company revenue.
The iPhone 18 Pro Lineup Drives Record Sales Without a Standard Model
Traditionally, Apple introduces both standard and premium smartphones simultaneously during its September hardware refresh. For the iPhone 18 generation, however, the company released only the iPhone 18 Pro and Pro Max alongside its folding device, the Duo. A base iPhone 18 model has not yet debuted.
That altered product cadence failed to suppress sales figures. iPhone revenue climbed to $57.58 billion, a 17 percent jump compared to the same period last year. Analysts note that simultaneous price adjustments across older models helped optimize product profitability while consumer demand gravitated toward high-end features.
Greater China Revenue Misses Analyst Projections Amid a Contracting Market
Despite global gains, Greater China presented a significant shortfall. Regional revenue came in at $14.49 billion, falling short of the $16.43 billion analysts modeled and dropping 4 percent year over year.
Data from market tracking firm IDC indicates that Apple’s challenge in the region stems from broader market contraction rather than lost ground to local competitors. During the second quarter of 2026, Apple grew its smartphone shipments in China by 24.4 percent, capturing roughly 18.1 percent of a shrinking market. Rising component and memory costs are pushing prices up across multiple brands, prompting consumers to lengthen their upgrade cycles.
Executive Guidance and Upcoming Hardware Releases for the Holiday Quarter
Looking ahead, leadership anticipates a rebound in the region. Chief executive guidance delivered to investors projects double-digit year-over-year iPhone growth for the current quarter, alongside an overall company revenue increase of 10 percent to 12 percent. Executives expect Greater China to return to growth, supported by sustained demand for the iPhone 18 lineup.
The upcoming period will also mark John Ternus’ first full quarter as CEO, following his transition into the role on September 1. Additional hardware catalysts include the folding iPhone Duo, which starts at $3,000 in Canada and launched via pre-orders in October, alongside a new touchscreen MacBook.