Apple claims it has a “huge” global rollout of the latest iPhones

The latest iPhones have seen a “tremendous response” around the world, Apple chief Tim Cook said as the tech giant released its latest financial results.

The company unveiled its thinnest iPhone, the Air, in September alongside the upgraded iPhone 17 models, proving a bumper crop for the company.

The company said it expects the upcoming Christmas and New Year period to be a hit, forecasting total revenue to be up to 12% higher than the same period last year.

But Apple narrowly missed forecasts for iPhone sales in the fourth quarter that ended in September, which Chief Executive Tim Cook blamed on supply constraints for several iPhone models as well as a backlog in shipments to China.

However, on a call with analysts, Mr. Cook said that Apple is heading into the holiday season “with our most powerful lineup yet.”

The iPhone Air helped attract customers and increase sales.

If the company meets its sales forecast for the holiday season, it will be “Apple’s best quarter ever,” Chief Financial Officer Kevan Parekh told analysts on Thursday.

Apple reported total revenue for the fourth quarter of $102.5 billion (£77 billion), beating analysts’ estimates and representing an 8% year-on-year increase. But iPhone revenue in particular fell just short of expectations of $49bn (£37bn).

Mr Cook stressed that global demand for the iPhone 16 and 17 models was robust, despite the restrictions that led to a decline in sales in the last quarter.

“We don’t predict when supply and demand will balance out,” Mr Cook said. “We’re obviously working very hard to achieve that because we want to get as many of these products to customers as possible.”

In the Chinese market, he said he “couldn’t be happier with how things are going,” citing strong reception to the new iPhone 17.

Data from Counterpoint, a technology market research firm, showed that the first 10 days of iPhone 17 sales in the US and China increased by 14% compared to iPhone 16 sales.

The effects of US President Donald Trump’s tariffs also remain a focus for Apple investors. It makes many iPhones in China, and its global supply chain makes it vulnerable to trade wars — although a recent meeting between Trump and President Xi raised hopes for a de-escalation of tensions.

On Thursday, Mr Cook told analysts that the company took a $1.1bn (£836m) hit from the tariffs in the recently ended quarter. He said the hit was likely to add up to another $1.4 billion in the holiday quarter as Trump levies taxes on those he deems “unfavorable” to the U.S. economy.

Amazon, which also reported quarterly results on Thursday, forecast sales to reach between $206bn (£156bn) and $213bn (£161bn) in the current quarter to December, broadly in line with analysts’ expectations.

“We are encouraged by the start of the peak season,” Brian Olsavsky, Amazon’s chief financial officer, told analysts.

Amazon also said revenue from Amazon Web Services (AWS), its cloud computing business, rose 20% in the third quarter from a year earlier — its fastest pace since 2022.

For investors, this AI-driven growth may come as a relief as Apple faces fierce competition in the race to dominate the AI ​​boom.

Apple shares have lagged those of rivals Microsoft and Alphabet, both of which on Wednesday reaffirmed their commitment to spend heavily on technology. These firms are reporting even faster growth than Amazon in their cloud computing businesses.

“We continue to see strong demand for AI and core infrastructure and are focused on accelerating capacity,” Amazon CEO Andy Jassy said in a statement.