Apple Beats Estimates and Forecasts Strong Growth Despite Tariff Impact
Apple announced stellar fiscal third-quarter results that surpassed Wall Street expectations and projected strong revenue for the upcoming quarter, even as it faces over a billion dollars in costs from U.S. tariffs. The positive outlook sent the company's shares up 3% in after-hours trading.
For the quarter ending June 28, Apple reported revenue of $94.04 billion, a nearly 10% year-over-year increase that comfortably beat analysts’ estimates of $89.54 billion. Earnings per share came in at $1.57, topping the expected $1.43.
Looking ahead, Apple’s Chief Financial Officer, Kevan Parekh, forecast “mid to high single digits” revenue growth for the current quarter ending in September. This projection is significantly more optimistic than the 3.27% growth analysts had anticipated.
The strong performance comes despite the ongoing trade war, which cost Apple $800 million in the June quarter and is expected to add another $1.1 billion in costs for the current quarter. CEO Tim Cook noted that the threat of tariffs spurred some customers to buy iPhones early in the quarter, estimating that this “pull-ahead” accounted for about one percentage point of the quarter’s sales growth.
Key Performance Highlights:
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iPhone Sales: Revenue from iPhones surged 13.5% to $44.58 billion, easily beating expectations of $40.22 billion.
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Mac and Services: Mac sales hit $8.05 billion and the services division reached $27.42 billion, both exceeding analyst forecasts.
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Pad and Wearables: Sales for iPads (6.58i
llion)andwearables( -
China Turnaround: Sales in Greater China rose to $15.37 billion, reversing a decline from the previous quarter, partly due to a government subsidy program.
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China Turnaround: Sales in Greater China rose to $15.37 billion, reversing a decline from the previous quarter, partly due to a government subsidy program.
While Apple faces challenges, including competition and investor concerns about its pace in integrating AI, Cook affirmed the company is “significantly growing” its AI investments. To mitigate tariff impacts, Apple has also been shifting production, sourcing more iPhones from India and other products from Vietnam.
