Apple\’s iPhone sales surge, profit tops forecasts.
Apple Celebrates 3 Billionth iPhone, Beats Forecasts With $23.4 B Profit
Apple announced a record quarterly profit of $23.4 billion, surpassing expectations despite concerns about U.S. tariffs affecting its supply chain. The company reported $94 billion in revenue for the June‑ending quarter, marking the slowest yet record‑growth period.
Record Revenue and Global Growth
- Revenue reached $94 billion, driven by double‑digit gains across iPhone, Mac and Services.
- Growth was observed worldwide, with every geographic segment showing an upward trend.
iPhone Sales Surge 13% YoY
Revenue from iPhone sales climbed from $39.3 billion a year earlier to $44.6 billion in the current quarter.
Market Share and Shipments
- Global smartphone shipments fell marginally to 288.9 million units.
- Samsung led the market with 57.5 million units, while Apple shipped 44.8 million iPhones—a 2% decline.
Tariffs and Supply Chain Adjustments
CEO Tim Cook disclosed that U.S. tariffs cost Apple $800 million last quarter and are projected to add $1.1 billion to costs in the current period.
- Apple’s iPhones are now largely sourced from India, a move to navigate the trade war between Trump and China.
- India will face a 25% duty starting Friday, slightly below earlier threats.
- Cook emphasized supply‑chain optimization and a commitment to invest $500 billion in the U.S. over the next four years.
China and Services Performance
- iPhone revenue in mainland China reached $15.4 billion, up from $14.7 billion a year earlier.
- The services segment grew to $27.4 billion, reflecting digital content and subscriptions.
Analyst Insights
Emarketer analyst Jacob Bourne highlighted that Apple’s iPhone strategy offsets AI development timelines, tariff pressures, and Google’s antitrust challenges.
- The company’s pivot to India demonstrates supply‑chain flexibility.
- Growth in China and services expansion, including financial services, illustrates diversification beyond hardware.
Key Takeaway
Apple’s record profits, resilient iPhone sales, and strategic supply‑chain moves position the company to navigate tariff impacts, AI timelines and geopolitical challenges.
