Yesterday’s AAPL earnings report revealed record revenue for a September quarter, and within it was an arguably even more significant record: iPhone revenue.
That’s because this year’s quarter only includes just two new iPhone models compared to the four released last year …
Apple reported fiscal quarter four revenue of $114.5 billion, up 12% year on year. Within that was iPhone revenue of $57.58 billion, which was also a quarterly record. What makes this significant is the year-on-year comparison, when you consider the new iPhone launch revenue included within each quarter.
- iPhone 17
- iPhone 17 Pro
- iPhone 17 Pro Max
- iPhone Air
- 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 Q4.)
The main thing that changed this year is that Apple didn’t launch a base model iPhone 18 alongside the Pro models: that launch won’t happen until early next year. The biggest factor in this decision was likely component shortages, Apple wanting to ensure that it could fulfill demand for premium models, but the revenue figures suggest that the timings also influenced purchase decisions.
Many people upgrade their iPhones on a fixed cycle, be that every one, two, or three years – and that cycle begins each September. When upgrade time rolled around and there was no base model iPhone 18 available, it seems likely that a significant number of those who would have bought it decided to instead opt for the iPhone 18 Pro rather than wait.
That may suggest rather modest sales of the base model iPhone 18 when it rolls around, but if Apple managed to persuade a significant number of would-be buyers to opt for a more expensive model, the company won’t be shedding any tears about that.
Of course, there are a couple of other factors in the mix here. First, the iPhone 17 proved extremely popular and remains on sale today, so it will have contributed something to this year’s Q4 revenue. Second, Apple cited revenue rather than profit, and of course the $100 price increase for this year’s Pro models will played a role. But overall I do think it paints a very encouraging picture for this split launch strategy.
What’s your take? Do you think it reflects well on iPhone 18 Pro sales, or do you think it can be explained away by the price increase and continuing popularity of the iPhone 17? Please share your thoughts in the comments.
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