Apple Blames Rumors for iPhone Sales Drop, Confident in Record Sales for Holiday Quarter
While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S.
Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend.
iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S.
Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year.
Popular Stories
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie.
"Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps.
The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future.
To set up the...
Apple is planning to launch new MacBook Pro models as soon as early March, but if you can, this is one generation you should skip because there's something much better in the works.
We're waiting on 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips, with few changes other than the processor upgrade. There won't be any tweaks to the design or the display, but later this...
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more.
Apple is expected to release/update the following products...
New MacBook Pro models with the M5 Pro and M5 Max chips could arrive as soon as Monday, March 2, according to Bloomberg's Mark Gurman.
In today's "Power On" newsletter, Gurman said that the release of new MacBook Pro models is tied to the release of macOS Tahoe 26.3. The launch is said to be slated for as early as the week of March 2. He added that the M4 Pro and M4 Max models on sale today...
