Apple tops estimates on strong iPhone sales, helped by tariff pull-forward
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Apple on Thursday reported better-than-expected quarterly revenue and earnings amid strong iPhone sales, driven in part by people pulling forward purchases to avoid tariffs.
Why it matters: Apple is seen as a bellwether for the tech industry, and its results are closely tied to the fortunes of a host of other companies, including component suppliers and wireless carriers.
Driving the news: Apple earned $23.4 billion, or $1.57 per share, on revenue of $94.0 billion for the three months ended June 28.
- Analysts were looking for per-share earnings of around $1.43, on revenue of $89.22 billion, per Bloomberg estimates.
The intrigue: CEO Tim Cook said on an earnings call that about a tenth of the company's revenue growth could be attributed to customers pulling forward purchases due to tariff fears, a phenomenon seen across industries this past spring.
- Tariffs cost the company about $800 million in the June quarter, and are projected to cost about $1.1 billion this quarter.
- President Trump has focused som ire on Apple over plans to build iPhones in India, as opposed to moving production to the U.S.
By the numbers: Here's how Apple's quarterly revenue broke down by product category.
- iPhone: $44.6 billion, ahead of analysts expectations of around $40 billion.
- iPad: $6.6 billion
- Mac: $8 billion
- Wearables and accessories: $7.4 billion
- Services: $27.4 billion
Between the lines: Sales rose in every geographic region, including Greater China, which had shown year-over-year declines in several recent quarters.
- Apple shares rose modestly in after-hours trading, most recently at $211.84, up $4.27, or more than 2%.
What they're saying: "Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment," Cook said in a statement.
- In interviews, he addressed the company's efforts in AI, where analysts have said the company is falling behind peers.
- "We are significantly growing our investments," Cook said about AI, per CNBC. "We're embedding it across our devices, across our platforms and across the company."
This is a developing story.
