Apple on Thursday projected holiday quarter iPhone sales and overall revenue that will exceed Wall Street expectations, fuelled by strong demand for its new iPhone 17 lineup. The company continues to face supply constraints and shipping delays, particularly in China, but is racing to fulfil growing orders.

Apple missed iPhone revenue estimates for the fiscal fourth quarter due to these supply bottlenecks, yet strong performance in other product segments—including newly launched AI-powered AirPods capable of real-time language translation—helped the company beat profit forecasts. Shares of Apple climbed 3.7% in after-hours trading following the announcement.

The results eased investor concerns over two key risks: Apple’s exposure to U.S.–China trade tensions and its pace of integrating artificial intelligence into its product ecosystem. The company’s performance instead highlighted the complexity of manufacturing and delivering hundreds of millions of devices worldwide.

In an interview with Reuters, CEO Tim Cook said he expects iPhone sales in the current holiday quarter to grow by double digits year-over-year. Apple also anticipates overall revenue growth of 10% to 12% in its fiscal first quarter of 2026—well above analyst expectations. According to LSEG data, analysts had predicted iPhone sales to rise 9.8% to $75.91 billion and total revenue to grow 6.6% to $132.53 billion.

With strong demand for the iPhone 17 series, improved performance across product categories, and upgraded AI-driven features, Apple enters the crucial holiday season with momentum—even as supply chain challenges persist.