India shines in Apple’s record September quarter

An all-time revenue record in India means Apple generated more revenue there than in any previous comparable period recorded by the company. The article identifies this as a September quarter record during John Ternus’s debut quarter as CEO. It matters because India is described as a stellar growth market, alongside records in both developed and emerging markets.

The result came from several parts of Apple’s business. The company recorded a September quarter record for iPhone upgraders, while Worldpanel ranked iPhone among the country’s top-selling smartphone models. Mac revenue also reached an all-time high, helped by demand for the MacBook Neo and MacBook Pro.

Apple also launched Apple Pay in India with Axis Bank during the quarter. That expands its services presence in one of the world’s largest consumer markets. The record therefore reflects device demand and a new payments offering, supporting Apple’s optimism about its long-term services business.

Apple generated $114.48 billion in total global revenue during the September quarter, its fourth fiscal quarter of FY26. That was an 11.72% increase from $102.47 billion in Q4 FY25. The scale matters because the quarter set Apple’s overall revenue base against higher memory costs and supply constraints.

The iPhone brought in $57.58 billion, equal to 50.30% of total revenue. Its revenue grew 17.46% year over year. The article links that increase to global records for iPhone upgraders and demand for the iPhone 18 Pro and foldable iPhone Duo.

Products produced $82.90 billion, while Services generated $31.57 billion. Together, these figures show how strongly Apple still depends on the iPhone while also building a substantial recurring services stream. For the full year, Apple reported record revenue of $478.83 billion.

Apple’s India growth was driven first by devices. The company recorded its strongest-ever September quarter for iPhone upgraders in the country. Worldpanel survey data also ranked iPhone among India’s top-selling smartphone models. These results show strong demand from both existing users replacing phones and customers buying iPhones.

Mac sales added another record. Apple said demand for the new MacBook Neo and MacBook Pro drove all-time revenue in India. During the same quarter, Apple launched Apple Pay in partnership with Axis Bank. This introduced a services offering alongside its hardware business in one of the world’s largest consumer markets.

The combination gives Apple more than one growth route in India. Device sales bring immediate revenue, while payments can support the services business over time. Apple CFO Kevan Parekh said the company remained optimistic about services, although the article provides no separate India revenue figure for Apple Pay.

Apple’s Services business is the part of the company that earns revenue from services rather than selling physical products. The article identifies cloud, video, and payment revenues as key contributors. It also reports more than 1.5 billion paid subscriptions and describes Services as an all-time-record business in the quarter.

Services generated $31.57 billion, or 27.58% of Apple’s quarterly revenue. Products generated $82.90 billion, or 72.42%. This split shows the mechanism clearly: Apple can earn from devices such as iPhones and Macs, while services create additional revenue from digital offerings and subscriptions.

Services revenue rose 9.82% year over year despite pressure from memory costs and supply limits affecting products. Apple launched Apple Pay in India during the quarter and said it was optimistic about the business’s long-term future. The article does not provide service-level profit figures.

Memory is a component used inside Apple’s devices, so rising memory prices increase the cost of making products. The article calls the current memory-price increase unprecedented. Apple said higher memory costs compared with the June quarter were partly offset by inventory and lower costs for some non-memory components.

At the same time, limited capacity for advanced semiconductor manufacturing reduced Apple’s ability to obtain chips. Apple COO Sabih Khan said fourth-quarter constraints were primarily caused by the availability of advanced nodes used to produce its system-on-chips. These limits restricted device availability and hampered shipments.

The financial consequence was compressed profit margins, even though quarterly profit after tax rose 11.81% to $30.71 billion. Apple said constraints were easing as more products moved to newer 2-nanometer technology nodes. The article therefore points to gradual supply improvement, but continuing cost and production pressure.

iPhone upgrades matter because existing customers replacing older phones can sustain demand even when the broader market changes. Apple reported a September quarter record for iPhone upgraders globally and in India. The article links global iPhone growth to upgrader records and demand for newer models, including the iPhone 18 Pro and iPhone Duo.

The installed base is Apple’s active population of devices. It stood above 2.5 billion devices, giving Apple a very large group of users who may buy products, use services, or upgrade over time. Paid subscriptions add recurring revenue. Apple reported more than 1.5 billion subscriptions, helping Services reach a record $31.57 billion.

These factors support longer-term business stability. Device upgrades can produce large sales surges, while subscriptions and services can continue generating revenue between hardware purchases. Apple also said cloud, video, and payment revenues were records, but the article gives no forecast for future subscription growth.

A semiconductor technology node is a name used to identify a chip-manufacturing generation. A 2-nanometer node is a newer generation than larger-numbered nodes. The article does not define the term, but established semiconductor usage associates smaller nodes with more transistors packed into chip designs and potential gains in performance or efficiency.

The practical example is Apple’s system-on-chips, or SoCs. Chief Operating Officer Sabih Khan said shortages of advanced nodes constrained fourth-quarter production. He also said Apple was transitioning more of its lineup to the latest 2-nanometer technology nodes. That transition connects manufacturing capacity directly to product supply.

Smaller nodes matter because modern devices require powerful chips within tight energy and space limits. However, newer manufacturing capacity can be difficult to secure. In Apple’s case, the company said constraints on advanced nodes were easing as more products moved to 2-nanometer technology, while memory inflation remained a separate cost pressure.