iPhone 17 Fuels Apple’s Comeback, AWS Powers Amazon’s Surge

Apple and Amazon both reported stronger-than-expected third-quarter results, sending Apple’s shares up more than 2% after hours and Amazon’s soaring nearly 12% — the best post-earnings performance among the “Big Six” tech giants.

Apple Highlights: iPhone 17 May Mark Its Strongest Quarter Ever; Services Stay Robust

Apple’s iPhone 17 lineup was launched only at the end of the third quarter, so its direct impact on Q3 results was limited. The market’s attention instead turned to Apple’s Q4 guidance.

CEO Tim Cook said on the earnings call that demand for the iPhone 17 series was “stronger than expected,” and projected that this could be “the strongest iPhone quarter in history.”

Both Cook and CFO Luca Maestri expect iPhone revenue to rise 10–12% year-on-year in the fourth quarter — the fastest quarterly growth in four years and well above analysts’ expectations of +6%. Several iPhone 17 models remain in short supply, and store traffic in Greater China has grown significantly from a year ago.

On costs, Cook noted that while new products like the iPhone 17 are slightly more expensive to produce than prior generations, Apple’s cost-control efficiency and higher pricing helped maintain a gross margin of 47.2%, in line with prior guidance. Lower-priced products also benefited from China’s “national subsidy” program, boosting sales.

Services remain a critical growth engine. Service revenue rose 15% year-on-year in Q3, beating both Q2’s +13% and market expectations of +12%. Apple TV won 22 Emmy Awards this year, while both Apple’s first-party and third-party advertising revenues hit record highs.

In capital spending, Apple increased its investments in AI technology, particularly in R&D. Although operating expenses grew faster than revenue, margins continued to improve, showing healthy operating leverage.

Amazon Highlights: AWS Growth Beats Expectations; E-Commerce Momentum Strong

Under pressure from Microsoft Azure and Google Cloud, AWS held its ground. AWS revenue rose 20% year-on-year, beating consensus expectations of +18.1%. Amazon’s shares had significantly lagged other mega-cap peers this year, so even modest good news sparked a major rally.

Once seen as an AI laggard, Amazon is catching up fast. The company announced an $8 billion investment in Anthropic and plans to deploy 1 million in-house Trainium2 chips by the end of 2025 — a move expected to generate billions in revenue and attract more customers to its custom silicon ecosystem.

Its AI-powered voice assistant, Alexa+, is gaining traction: user interactions have doubled, and conversation topics have broadened significantly.

On the e-commerce front, Amazon continues to strengthen its leadership by expanding product categories, maintaining low prices, and speeding up delivery. Essential goods remain its fastest-growing segment, growing twice as fast as other categories. Grocery delivery is now free for same-day orders, and Amazon has added hundreds of thousands of new popular items this year.

Amazon Lens, an AI-powered visual search tool, allows customers to find products via camera, screenshots, or barcodes, and now serves tens of millions of users monthly. The company’s AI-driven audio shopping feature — blending product descriptions and reviews — is already used by millions.

Meanwhile, Amazon Prime Video is expanding live sports coverage, with double-digit growth in cable viewership. The platform will add The Masters golf tournament in 2026, further strengthening its sports portfolio.