Apple's Israeli Importer Reports Record Profits Driven by AI Demand
Translated & summarized from Ice by baba
Apple's Israeli distributor, Icon Group, reported a record third-quarter profit of NIS 13.1 million, a 52.5% increase, driven by strong sales of advanced computers fueled by AI demand. Revenues grew 13.2% to NIS 433.2 million, despite a stronger shekel impacting reported figures. The company's strong performance coincides with potential acquisition talks with Cellcom, which is reportedly interested in buying a controlling stake.
The story in 5 lines · by baba
- Icon Group, Apple's Israeli distributor, reported a record NIS 13.1 million profit in Q3 2026.
- Profits surged 52.5% and revenues increased 13.2% to NIS 433.2 million.
- Increased demand for AI-powered computers significantly boosted sales.
- Cellcom is reportedly in preliminary talks to acquire a controlling stake in Icon Group.
- The company's board approved a NIS 10 million dividend payment.
Icon Group, the Israeli distributor of Apple products and owner of the iDigital retail chain, announced strong financial results for the third quarter of 2026. The company reported a net profit of approximately NIS 13.1 million, a 52.5% increase from NIS 8.6 million in the same period last year, marking the highest third-quarter profit in five years. Group revenues rose 13.2% to about NIS 433.2 million, up from NIS 382.8 million in the prior year. This growth was attributed to expanded distribution activities, including sales of computers, servers, and peripherals from leading manufacturers like Apple, Lenovo, Asus, HPE, and Check Point. Icon Group highlighted increased demand for advanced computers, fueled by the growing use of artificial intelligence (AI) applications requiring higher processing capabilities.
The company noted that a strengthening Israeli shekel against the US dollar negatively impacted reported revenues, reducing them by an estimated NIS 35.8 million. The iDigital retail segment also saw improved profitability, with operating profit jumping 37.9% to approximately NIS 8.6 million, partly due to increased sales of accessories under the private iConic brand. However, retail segment revenues remained largely unchanged at about NIS 116.1 million.
Overall, the group's operating profit surged 58.7% to NIS 23 million, and gross profit increased by 34.7% to NIS 54 million. For the first nine months of the year, group revenues reached NIS 1.29 billion, with net profit soaring 68% to NIS 35.4 million. The board approved a dividend distribution of NIS 10 million, bringing the total to NIS 30 million for the year so far.
These strong results come amid potential negotiations for a controlling stake in Icon Group. Reports indicate that Cellcom is in preliminary talks to acquire control from the Sky fund, which is reportedly seeking a company valuation of NIS 500 million, significantly higher than its market value of approximately NIS 370 million at the time of the report. Such an acquisition could expand Cellcom's retail and electronics distribution operations. The talks are in an early stage, and any deal would require approval from the Antitrust Authority.
Doron Sela, CEO of Icon Group, stated that the company continues to see strong demand for its products and solutions and is focused on expanding its operations and developing new growth engines.