Apple reports record iPhone revenue after refresh focused on Pro models

Apple reported record iPhone revenue in its fourth-quarter earnings report on Monday, November 2, even though its latest phone refresh did not include a new standard model. Revenue from the iPhone business reached $57.58 billion, an increase of 17 percent compared with the same period a year earlier. The results followed a September launch focused on the more expensive models in Apple’s phone range.

The iPhone 18 lineup introduced in September included pricier iPhone 18 Pro and Pro Max models. Alongside that release, Apple increased prices for its older phones. The company also unveiled the iPhone Duo, its first folding phone, although revenue from preorders for that device was not included in the fourth-quarter earnings report.

The launches came as Apple, like other device manufacturers, faced supply chain constraints and higher memory costs. Those pressures have led the company to increase prices across its products. Availability of the folding iPhone was also constrained: only a limited number of iPhone Duos were available in stores at launch, and some estimated shipping dates extended into 2027.

Speaking to CNBC, Apple CEO John Ternus said memory costs had increased compared with the June quarter. He said the benefit of inventory the company was carrying, together with lower costs for components other than memory, had partly offset that rise. His comments outlined the cost pressures accompanying Apple’s latest product releases and price increases.

Across the company, fourth-quarter revenue rose 12 percent to $114.5 billion. Mac revenue increased 24 percent to $10.79 billion, while the services division grew to $31.57 billion. That business includes commissions from the App Store as well as subscriptions to offerings such as Apple TV and Apple Music. The iPad business moved in the opposite direction, with revenue falling 10 percent from a year earlier to $6.23 billion.

Apple also expanded other parts of its product lineup over the past several weeks. Its push into smart home devices included the introduction of its first smart home display, alongside video doorbells, security cameras and door locks. The company developed that range of products in collaboration with LG and Schneider Electric.

Another significant product announcement came last week, when Apple unveiled a MacBook Pro with a touchscreen. The addition marked a change in design direction for the laptop, adopting a feature that Apple executives had previously resisted.