Cupertino, October 29, 2025 – Apple Inc. (AAPL.O) is on track for a strong holiday quarter, driven by early demand for its new iPhone 17 lineup, despite delays in the release of its artificial intelligence (AI) features. Analysts expect the company’s fiscal fourth-quarter revenue to rise 7.6% to $102.17 billion, buoyed by the popularity of higher-margin iPhone Pro models in the U.S. and China.

Premium iPhone 17 Models Fuel Upgrade Cycle

Launched on September 19, 2025, the iPhone 17 series has attracted significant consumer interest thanks to its sharper display, larger storage options, and upgraded processor. Research firm Counterpoint reported that sales in the first 10 days in key markets were 14% higher than the previous series, with demand skewed toward the Pro devices.

Despite a slower uptake for the iPhone 17 Air, priced at $1,000 with a single-lens camera, early results indicate Apple is successfully driving a premium upgrade cycle. Pre-orders for the Air model in China only began in mid-October due to delayed eSIM support approvals.

Strong Performance in the U.S. and China

Apple’s September-quarter shipments in China have benefited from the iPhone 17’s appeal, despite fierce competition from Xiaomi (1810.HK) and Huawei. Analysts see the strong sales trend easing fears that Apple may lag behind rivals such as Samsung Electronics (005930.KS), which has been quicker to integrate AI features into its devices.

eMarketer analyst Jacob Bourne said, “Apple is riding high into earnings with better-than-expected iPhone 17 sales in both the U.S. and China, buoying it back to top-smartphone-provider status. Yet the battle is far from won as questions about its AI standing linger.”

Record iPhone Sales and Revenue Forecasts

Wall Street estimates indicate that iPhone sales rose 8.6% to $50 billion, marking a record for the July–September period. Total revenue is projected at $102.17 billion, with earnings per share of $1.77. Apple has also shifted more U.S.-bound iPhone production to India to mitigate tariff impacts, expecting about $1.1 billion in related costs for the quarter.

AI Ambitions Under Scrutiny

Investors are closely monitoring Apple’s AI strategy following high-profile talent departures and delays in the rollout of its AI-powered Siri, now scheduled for 2026. Bob O’Donnell, president of TECHnalysis Research, commented, “Apple has not yet delivered compelling AI offerings, nor a strategy to retain top AI talent.”

Despite AI-related concerns, Apple’s strong iPhone 17 demand underscores the company’s ability to drive high-margin sales, reinforcing its position as one of the world’s leading smartphone makers heading into the holiday season.