CUPERTINO, California: Apple CEO Tim Cook projected a robust holiday season, saying iPhone sales and overall revenue will rise faster than Wall Street expects, driven by strong demand for the iPhone 17 lineup despite ongoing supply bottlenecks.

Cook said he expects iPhone revenue to grow by double digits and total sales to increase 10–12 percent year over year in the current quarter, well ahead of analyst forecasts. Apple shares jumped 3.7 percent in after-hours trading following the upbeat outlook.

The optimism comes even as Apple fell slightly short of iPhone sales estimates in its fiscal fourth quarter due to supply delays and shipping setbacks in China. The company offset that weakness with better-than-expected results in other categories, including new AI-powered AirPods capable of real-time translation, helping overall profit beat expectations.

Apple's sales for the quarter ended September 27 totaled US$102.47 billion, compared with forecasts of $102.26 billion, while profit came in at $1.85 per share versus estimates of $1.77, according to LSEG data. iPhone sales reached $49.03 billion, slightly below the expected $50.19 billion.

Cook acknowledged that Apple is still working to resolve supply shortages for several iPhone 17 models. "We're experiencing supply constraints still on several models of the iPhone 17, and we're filling orders just as fast as we can," he said. "It's a good problem to have."

In China, where Apple faced regulatory delays tied to its iPhone Air — the company's thinnest and most ambitious design overhaul yet — Cook said the late launch was the "primary reason" for the region's weaker performance. Sales there totaled $14.49 billion, below the $16.24 billion expected. "We love the response to the new products there, and we expect to return to growth in Q1," Cook said.

Apple is betting on its expanded lineup — from the ultra-thin iPhone Air to the upgraded iPhone Pro models — to fuel a strong holiday performance. Analysts said early indicators look promising. "Guidance was better than expected. Ten to twelve percent growth is strong," said Ryuta Makino of Gabelli Funds.

Apple's services division, which includes Apple TV+ and its movie business, posted $28.75 billion in revenue, exceeding forecasts of $28.17 billion. Sales in Mac and accessories also topped expectations, though iPad sales came in slightly lower.

The company continues to face external pressures from U.S.-China trade tensions and Trump administration tariffs, which added $1.1 billion in costs last quarter. Apple expects that figure to rise to $1.4 billion in the current period.

Looking ahead, investors are watching whether Apple can translate its iPhone momentum into progress on artificial intelligence, an area where rivals have moved faster. Cook said Apple is "making good progress" on upcoming Siri updates set to debut next year.