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Apple Revenue Growth and iPhone 17 Impact
Apple’s revenue has reaccelerated to over 6% growth in fiscal 2025, compared to just 2% in fiscal 2024. The company reported quarterly revenue growth of 4%, 5%, 0%, and 8% year-over-year during this period. The current iPhone 17 cycle is a significant driver, with double-digit year-over-year growth in iPhone revenue reported in the third quarter. This growth is expected to continue into the holiday season as management anticipates double-digit growth in the current quarter ending December 2025.
Services Business and AI Integration
Apple’s services division, which includes the App Store and Apple Music, saw a 15% year-over-year revenue increase, representing nearly 30% of total revenue in the fourth quarter of fiscal 2025. This segment boasts considerably higher profit margins than hardware. Looking forward, Apple is investing in AI technologies, indicating potential for future hardware upgrades that could further drive sales.
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