Apple iPhone revenue hits record high

Apple reported record iPhone revenue of $57.58 billion in its fourth quarter, marking a 17 percent increase over the same period last year. The company achieved this milestone without releasing a standard, non-Pro iPhone model during its most recent hardware refresh.

The sales surge followed the September launch of the iPhone 18 lineup. This release featured only the higher-priced iPhone 18 Pro and iPhone 18 Pro Max. Apple also increased prices for its older models during this period. Although the company unveiled the iPhone Duo, its first folding phone, preorder sales for that device are not included in the current earnings report.

Apple faces supply chain constraints and rising memory costs, factors that have driven price increases across its product lines. John Ternus, Apple's CEO, told CNBC that memory costs were higher compared to the June quarter. He noted that these increases were partly offset by inventory benefits and lower costs for non-memory components.

The company reported a 12 percent overall revenue increase, bringing total quarterly earnings to $114.5 billion. The Mac business grew 24 percent to $10.79 billion. The services division, which includes App Store commissions and subscriptions for Apple TV and Apple Music, reached $31.57 billion. Conversely, iPad revenue fell 10 percent year over year to $6.23 billion.

Apple has expanded into other product categories in recent weeks. It launched its first smart home display alongside a series of video doorbells, security cameras, and door locks developed with LG and Schneider Electric. The company also revealed a new MacBook Pro featuring a touchscreen, a design element its executives had previously resisted.

The iPhone Duo launch was constrained by limited in-store availability. Some estimated shipment dates for the folding device extend into 2027. The company attributes its strong performance to the mix of premium hardware and service growth, despite the challenging component cost environment.