Apple reported $94.04 billion in revenue for its fiscal third quarter ended on June 28, up nearly 10 percent from a year earlier and beating analyst expectations of $89.54 billion, according to LSEG data, a Reuters report said.
According to The Hollywood Reporter, Apple’s services segment, which includes Apple TV+, Apple Music, Apple Arcade and other products, posted overall revenue of $27.4 billion, up 13 percent from a year-earlier $24.2 billion.
Key iPhone sales were $44.6 billion during the latest quarter, a 13 percent rise from a year-earlier $39.2 billion, in part as consumers accelerated purchases amid fears tariffs may force up device prices. The quarterly results were announced on July 31.
Apple reported $94.04 billion in revenue for its fiscal third quarter ended on June 28, up nearly 10 percent from a year earlier and beating analyst expectations of $89.54 billion, according to LSEG data.
As the centerpiece of US President Donald Trump’s trade war, tariffs cost Apple $800 million in the June quarter and spurred some customers to buy iPhones in late spring this year. Those purchases helped Apple’s fiscal third-quarter sales beat expectations by the biggest percentage in at least four years, according to LSEG, the Reuters report explained.
The company still forecast growth, though, with Chief Financial Officer Kevan Parekh saying the company expects revenue growth for the current quarter in the “mid to high single digits,” which would exceed the 3.27 percent growth to $98.04 billion that analysts expected, according to LSEG data, Reuters added.
Sales of iPhones, the best-selling product for the company based in Cupertino, California, were up 13.5% to $44.58 billion, beating analyst expectations of $40.22 billion.
Apple has been shifting production of products bound for the US, sourcing iPhones from India and other products such as Macs and Apple Watches from Vietnam.
The ultimate tariff rates many Apple products could face remain in flux, and many of its products are currently exempt. Sales in its Americas segment, which includes the US and could face tariff impacts, rose 9.3 percent to $41.2 billion.
In an interview with Reuters, Cook said the company set seasonal records for upgrades of iPhones, Macs and Apple Watches. He said Apple estimates about 1 percentage point of its 9.6 percent of sales growth in the quarter was attributable to customers making purchases ahead of potential tariffs.
“We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements,” Cook told Reuters, though he also said the active user base for iPhones hit a record high in all geographies.
Apple has delayed the release of an AI-enriched version of Siri, its virtual assistant, but company CEO Tim Cook said the company is “making good progress on a personalized Siri.” He also said Apple, which has thus far not engaged in the massive capital expenditures of its Big Tech rivals to pursue AI, is “significantly growing” its investments in artificial intelligence.
“Apple has always been about taking the most advanced technologies and making them easy to use and accessible for everyone, and that’s at the heart of our AI strategy,” Cook said.
Apple faces regulatory rulings in Europe that threaten to undermine its lucrative App Store business. Apple said sales from its services business, which includes the App Store as well as music and cloud storage, were $27.42 billion, topping analyst expectations of $26.8 billion.
Sales of wearables such as AirPods and Apple Watches were $7.4 billion, missing estimates of $7.82 billion. Mac sales of $8.05 billion beat expectations of $7.26 billion, while iPads hit $6.58 billion in sales, missing expectations of $7.24 billion.
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