iPhone revenue hits $57.58 billion record despite missing standard model

Apple consumers paid more for their devices this quarter, and the company collected $57.58 billion in iPhone revenue. That figure represents a 17 percent increase over the same period last year. The record sales occurred even though Apple did not release a standard iPhone model during its latest product refresh.

The revenue growth followed the September launch of the iPhone 18 lineup. The new release included the iPhone 18 Pro and Pro Max, both of which carried higher price tags. Apple also increased prices on its older device models at the same time. The company introduced its first folding device, the iPhone Duo, but those preorders are not yet included in this earnings report.

John Ternus, Apple's CEO, explained the pricing pressure to CNBC. He noted that memory costs were higher than in the June quarter. Those increased expenses were partly offset by the benefits of carrying inventory and lower costs for non-memory components. Supply chain constraints and rising memory prices are affecting other device makers as well, leading to broader price adjustments across the industry.

Total company revenue rose 12 percent to reach $114.5 billion for the quarter. The Mac business saw a 24 percent increase, generating $10.79 billion. The services division, which includes App Store commissions and subscriptions for Apple TV and Apple Music, grew to $31.57 billion. Conversely, iPad revenue fell 10 percent year over year to $6.23 billion.

Apple has expanded its hardware offerings beyond the phone in recent weeks. The company launched its first smart home display along with a series of video doorbells, security cameras, and door locks. These security products were developed in collaboration with LG and Schneider Electric. The push into the smart home sector marks a new area of competition for the company.

Last week, Apple unveiled a MacBook Pro featuring a touchscreen display. This design change represents a departure from the company's long-standing resistance to touch interfaces on its laptops. The new MacBook Pro joins the other recent hardware releases in the company's current product lineup.

The iPhone Duo remains in limited availability in stores. Some estimated shipment dates for the folding device extend into 2027. The delay in full availability means the bulk of the reported iPhone revenue comes from the Pro models and the updated older devices.