Apple Forecasts Strong Revenue Despite Rising Tariff Costs

SAN FRANCISCO

Apple is expected to deliver stronger-than-anticipated revenue for the quarter ending in September, sending its shares higher even as CEO Tim Cook warned of escalating tariff expenses. The company posted nearly 10% year-on-year growth in the June quarter, with revenue reaching approximately $94.04 billion—surpassing analyst projections by over $4 billion and marking its best quarterly beat in years. iPhone sales surged 13.5% to about $44.6 billion, largely fueled by consumers rushing purchases ahead of anticipated tariff hikes. Meanwhile, sales in Greater China climbed to $15.4 billion, benefiting from government subsidies and renewed consumer enthusiasm.

For the upcoming quarter, Apple cautioned that new U.S. tariffs are expected to add $1.1 billion to its costs—on top of the $800 million hit in the June quarter. Despite this warning, the company projected mid‑ to high‑single‑digit revenue growth, signaling continued confidence in demand and market resilience.

Investors responded positively: Apple shares rose about 1.5% in Frankfurt and roughly 3% in U.S. after-hours trading, reflecting market faith in the tech giant’s outlook.

Apple’s margin performance also exceeded expectations, and its services division generated $27.4 billion in revenue—outpacing forecasts—while wearable sales underperformed. CFO Tim Cook emphasized ongoing investment in AI, including personalization features for Siri and infrastructure expansion. Apple is also mitigating tariff impact by shifting more production to India and Vietnam, though delays in AI strategy and competitive pressure could cloud future prospects.