iPhone big sale forecast! Apple Inc. (AAPL.US) Q4 performance and guidance exceed expectations, predicting double-digit growth in holiday season sales.

Apple Inc. (AAPL.US) reported better-than-expected performance for the fourth quarter of fiscal year 2025, predicting a significant increase in holiday season sales after releasing a new iPhone, which helps investors believe that its flagship products are still the growth engine. For the fourth quarter ending September 27, sales increased by 7.9% year-on-year to $102.5 billion, slightly above the average expectation of $102.2 billion. Earnings per share rose to $1.85, higher than the average expectation of $1.77. The company's net profit for the fourth quarter was $27.46 billion, compared to $14.29 billion for the same period last year, due to a one-time tax expense. The gross margin was 47.2%, higher than analysts' expected 46.4%. In terms of business segments, Apple Inc. released the latest iPhone in September, featuring a new design and introducing a super-thin model called Air. This product line remains the most profitable for Apple Inc., accounting for about half of its total revenue. The performance of the Mac and wearables departments also exceeded expectations. In the previous quarter, Apple Inc.'s revenue in Greater China decreased by 3.6% to $14.5 billion, well below analysts' expectations of $16.4 billion. The company faces increasingly fierce competition from local smartphone manufacturers in China, and struggles with artificial intelligence functions. Nevertheless, CEO Tim Cook expressed confidence that Apple Inc. would see growth in Greater China in the current quarter. Cook stated that the delivery delays in the Chinese market were the "main reason" for the decline in sales in China for the fourth quarter. He mentioned that Apple Inc. is still working to address some supply constraints. Looking ahead, CFO Kevan Parekh stated in a conference call with analysts on Thursday that revenue for the first quarter ending in December is expected to increase by 10% to 12%, surpassing analysts' previous average forecast of 6%. He said, "We expect iPhone revenue to grow in double digits year-on-year, making it the best quarter for our iPhone performance ever." According to LSEG data, analysts expect Apple Inc.'s revenue for the new quarter (December quarter) to reach $132.31 billion, with earnings per share of $2.53. These projections have been exceeded by Apple Inc.'s performance guidance. If revenue grows by 11% year-on-year, this quarter's revenue could reach $137.97 billion. This outlook indicates that Apple Inc. is addressing a range of global challenges, including trade tensions, weakness in the Chinese market, and delays in the development of artificial intelligence functions. Natalie Hwang, Founding Managing Partner of Apeira Capital, stated, "The holiday season is expected to see strong growth, providing...