Apple CEO Predicts iPhone Sales to Surpass Wall Street Holiday Estimates

Apple’s CEO Tim Cook recently provided an optimistic forecast for the company’s upcoming holiday quarter. He predicts that iPhone sales will exceed Wall Street’s expectations, with strong demand noted for the iPhone 17 models.

Holiday Quarter Forecast: iPhone Sales to Surpass Expectations

During a recent interview, Cook mentioned that iPhone sales are expected to grow by double digits year over year. This projection comes as Apple navigates ongoing supply constraints and shipping delays, particularly in the Chinese market.

Key Projections and Financial Performance

• Expected iPhone Sales Growth: Double-digit increase compared to last year.
• Overall Revenue Growth: Projected increase of 10-12% year over year.
• Analyst Estimates: iPhone sales to rise 9.8% to $75.91 billion; total sales expected to increase by 6.6% to $132.53 billion.

In the past fiscal fourth quarter, which ended September 27, Apple reported sales of $102.47 billion and earnings of $1.85 per share. Analysts had anticipated slightly lower figures. However, iPhone sales came in at $49.03 billion, missing expectations. This missed target was largely attributed to the supply chain issues affecting the iPhone 17 lineup and regulatory delays in China.

Challenges in the Chinese Market

Cook indicated that delays in launching the iPhone Air, Apple’s thinnest iPhone yet, significantly impacted sales in China. He described these delays as the “primary reason” for the decline in sales during the last quarter but remains optimistic about future performance in the region. Sales in Greater China were approximately $14.49 billion, falling short of analysts’ expectations.

Other Business Segments Show Strength

Despite challenges with iPhone sales, other segments of Apple’s business performed well:

• Services Revenue: Reached $28.75 billion, surpassing estimates.
• Mac Sales: $8.73 billion, also exceeding expectations.
• Accessory Sales: $9.01 billion, outperforming estimates of $8.49 billion.

Apple’s successful push in selling advanced AirPods, which use AI for language translation, coupled with the sale of older iPhone models, helped to balance revenue for the fourth quarter.

Supply Constraints and Future Outlook

Cook acknowledged that supply constraints remain an issue as the company strives to meet consumer demand for the iPhone 17 series. He believes that resolving these challenges could further strengthen Apple’s market position during the holiday season.

Cook’s remarks about improving Siri’s capabilities next year hint at Apple’s ongoing commitment to enhancing its AI technologies. Investors appear optimistic, as Apple’s shares rose 3.7% following the announcement.

Overall, the forecast for the upcoming quarter indicates a potent blend of consumer demand and supply chain improvements, offering a promising outlook for Apple as it prepares for the holiday sales season.