Yesterday’s AAPL earnings report revealed record revenue for a September quarter, and it contained an arguably even bigger record: iPhone revenue.
Indeed, this year’s quarter only includes two new iPhone models, compared to four released last year…
Apple reported revenue of $114.5 billion for the fiscal fourth quarter, up 12% year over year. This represents $57.58 billion in revenue for the iPhone, which is also a quarterly record. What makes this important is the year-over-year comparison, when you consider the new iPhone launch revenue included in each quarter.
2025:
- iPhone17
- iPhone 17 Pro
- iPhone 17 Pro Max
- iPhoneAir
2026:
- iPhone 18 Pro
- iPhone 18 Pro Max
(Although the iPhone Duo was announced at the same time, pre-orders didn’t open until October, so none of this revenue is included in Apple’s fiscal fourth quarter.)
The main thing that’s changed this year is that Apple hasn’t launched a base iPhone 18 model alongside the Pro models: that launch won’t happen until early next year. The biggest factor in this decision was likely the shortage of components, with Apple wanting to ensure it could meet demand for higher-end models, but revenue figures suggest lead times also influenced purchasing decisions.
Many people upgrade their iPhone on a fixed cycle, whether it’s every one, two, or three years, and this cycle starts every September. When upgrade time ran out and no base model of the iPhone 18 was available, it seems likely that a significant number of those who would have purchased it decided to go with the iPhone 18 Pro rather than wait.
This may suggest rather modest sales of the base iPhone 18 model when it launches, but if Apple manages to persuade a significant number of potential buyers to opt for a more expensive model, the company won’t shed any tears over it.
Of course, there are a few other factors that come into play here. Firstly, the iPhone 17 has proven extremely popular and remains on sale today, so it will have contributed something to this year’s fourth quarter revenue. Second, Apple talked about revenue rather than profits, and the $100 price increase for this year’s Pro models will play a role. But overall, I think it paints a very encouraging picture for this split launch strategy.
What do you think? Do you think this reflects well on sales of the iPhone 18 Pro, or do you think it can be explained by the price increase and continued popularity of the iPhone 17? Please share your thoughts in the comments.
Photo: Apple
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