Apple Inc. has announced impressive financial results, with its revenue growth reaching a four-year high, significantly driven by robust iPhone sales that surpassed analyst expectations and underscored the company’s strong market position.

The technology giant reported a remarkable 10% surge in overall revenue growth, with iPhone sales skyrocketing by 13%. This performance marks Apple’s most substantial quarter for revenue expansion since December 2021, exceeding Wall Street’s financial results forecasts and reflecting a period of accelerated growth.

Tech earnings per share, excluding certain costs like stock compensation, reached $1.57, comfortably beating the $1.43 target. Total revenue soared to an impressive $94.04 billion, far exceeding the projected $89.53 billion, while net income climbed to $23.43 billion from $21.49 billion year-over-year, painting a clear picture of strong financial results.

Apple CEO Tim Cook addressed the impact of tariffs, noting approximately $800 million in costs absorbed by the company, avoiding passing them to consumers. He projected these costs could rise to $1.1 billion in the upcoming quarter, indicating a careful balancing act in managing global trade dynamics and influencing future revenue growth.

The iPhone remains Apple’s powerhouse, generating $44.58 billion in sales, propelled by the stronger-than-expected popularity of the iPhone 16 model, contributing significantly to overall iPhone sales. Mac sales also saw significant growth, up 15% to $8.05 billion, largely due to the new MacBook Air. Services revenue similarly performed strongly at $27.42 billion, boosted by iCloud and App Store growth, further bolstering Apple’s financial results.

Not all segments saw gains; iPad sales decreased by 8% to $6.58 billion, and “other products” like AirPods and Apple Watches also fell short of targets. However, encouraging news came from China, where sales rebounded with a 4% increase to $15.37 billion, reversing a previous declining trend and contributing to global revenue growth for Apple.

Apple’s strategy in artificial intelligence involves acquiring startups to integrate their technologies, with “around seven” companies bought this year. Tim Cook reiterated openness to M&A that accelerates their roadmap, and he believes emerging AI devices will likely complement, rather than replace, the iPhone, shaping future tech earnings.

Analysts like Holger Mueller highlighted that tariff anticipation, alongside holiday seasons and new models, significantly influences sales, indicating increased cost consciousness among iPhone sales buyers. Investors reacted positively to these robust financial results, with Apple’s stock initially gaining over 4%, though it settled to a 2% gain at the time of writing.