Apple beats forecasts as US buyers rush iPhones before tariffs
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The news: Apple smashed Wall Street expectations with a 13.5% jump in iPhone sales to USD44.58 billion in the June quarter, fuelled in part by US consumers rushing to buy ahead of looming tariffs.
The numbers: Total revenue climbed to USD94.04 billion for the June quarter, up 9.6% year-on-year and nearly USD4.5 billion above LSEG forecasts. Gross margins and earnings per share also beat estimates.
Revenue from China rose 4% year-on-year in the quarter, reversing a pattern of previous quarterly declines.
Apple shares have fallen over 17% this year, making it one of the 15 worst-performing stocks in the Nasdaq 100 and trailing all other major tech peers except Tesla. Shares were 2% higher in after hours trading after the result.
The context: Apple is facing rising trade and regulatory risks. It has absorbed a 20% tariff on iPhones imported from China but mitigated the impact by shipping more US bound devices from India.
However, that workaround may soon be affected, with an exemption from reciprocal tariffs on smartphones expected to lapse, and President Trump recently announcing new double-digit US tariffs on India that could be imposed as early as Friday.
Apple is also navigating regulatory pressure on multiple fronts. That includes a US court recently ordered changes that could make it easier for app developers to bypass Apple’s App Store, a key revenue source.
On the technology front, Apple has not yet launched major AI-driven features like its rivals
The sources: Apple, Bloomberg, Reuters, Financial Times
