Apple Revenue Forecast Beats Estimates Tariff Costs Projected at $11 Billion

Apple’s stock surged Thursday as the tech giant projected revenues for the quarter ending in September that handily beat Wall Street’s expectations. The bullish forecast overshadowed a cautionary note from CEO Tim Cook, who warned investors that impending US tariffs would tack on an estimated $1.1 billion in additional expenses.

Trump’s trade war took a $800 million bite out of Apple’s June quarter, thanks to hefty tariffs. But a curious thing happened: the tariffs seemed to spark a late-spring iPhone buying spree. This unexpected surge propelled Apple to crush fiscal third-quarter sales expectations by the widest margin in at least four years, according to LSEG, proving even trade wars can have silver linings.

Despite headwinds, the company projects an upswing. CFO Kevan Parekh predicts revenue will climb by a “mid to high single-digit” percentage this quarter. Beat expectations? Absolutely. Wall Street analysts, per LSEG data, anticipated a 3.27% increase to $98.04 billion. Prepare for a potentially significant surge.

Apple’s fiscal third quarter was a blockbuster! Defying gravity in a tough economic climate, the tech giant raked in $94.04 billion in revenue, a stunning 10% leap from last year. Wall Street analysts, who predicted a solid $89.54 billion, were left in the dust. The company didn’t just beat expectations; they crushed them, reporting earnings per share of $1.57, exceeding the forecasted $1.43 and proving, yet again, that Apple remains a force to be reckoned with.

Apple shares were up 3 percent in after-hours trading, extending gains after Apple provided its forecast.

Cupertino’s cash cow, the iPhone, defied gravity. Sales soared 13.5% to $44.58 billion, obliterating Wall Street’s $40.22 billion forecast.

Apple’s quietly redrawing its global map. Forget China – your next iPhone might hail from India, while Macs and Apple Watches are clocking in from Vietnam. The shift is on, and America’s tech supply chain is getting a serious makeover.

Apple’s tariff rollercoaster continues, with potential duties on its iconic products still hanging in the balance. While many items currently dodge the tariff bullet, a looming question mark hovers over future levies. Despite this uncertainty, Apple’s Americas division, a $41.2 billion empire encompassing the US, defied gravity, surging 9.3 percent. Could this growth be a pre-tariff buying spree, or is Apple simply too powerful to be stopped?

Despite regulatory hurdles delaying its AI rollout in Greater China, Apple defied expectations, ringing up $15.37 billion in sales. This impressive figure, a year-over-year increase, surpassed analyst predictions of $15.12 billion, according to Visible Alpha. It seems even red tape can’t stop the Apple faithful.

That gain was a turnaround from a year-over-year decline in China sales in the March quarter.

During an analyst call, Cook highlighted a surprising market surge: a Chinese subsidy program, designed to reignite smartphone sales, gave Apple a noticeable lift.

“It was the first full quarter of the subsidy playing out,” Cook told analysts.

Early Purchases

Apple CEO Tim Cook, in a recent Reuters interview, revealed a surge in upgrades, with iPhones, Macs, and Apple Watches all hitting seasonal records. A savvy shopping spree, fueled by looming tariffs, accounted for roughly a tenth of Apple’s impressive 9.6% quarterly sales growth, Cook estimated.

“Early in the quarter, we witnessed a rush – likely triggered by looming tariff hikes,” Cook revealed to Reuters. But despite this, iPhone’s loyal fanbase surged to record levels across the globe.”

Trade winds are picking up speed: Washington is reportedly leaning on both Beijing and Delhi in ongoing trade talks. The former president has warned India could be slapped with 25% tariffs as early as Friday. Despite the pressure, experts suggest India may still offer Apple a cost-effective haven in the long run.

“While tariff-driven demand pulled sales forward a predictable reaction to looming price hikes Apple’s performance this quarter remains a triumph. Jacob Bourne, Emarketer analyst, notes that despite this period typically being a lull, iPhone growth defied expectations, underscoring Apple’s enduring appeal.”

Apple’s battles extend beyond tariff wars. The tech giant is locked in a high-stakes duel with Samsung for dominance in the premium smartphone arena. Meanwhile, Google’s Alphabet is aggressively injecting AI into Android, turning up the heat on Apple’s software stronghold.

Microsoft and Nvidia are riding the AI rocket to new market heights, leaving Apple eating their silicon dust. While the AI titans celebrate record valuations, Apple’s stock has plunged 17% this year. Investors are spooked, caught between the crossfire of escalating tariffs and a nagging fear: has the bite of the Apple gone soft on AI?

Apple’s playing the long game in the AI race. While a smarter, AI-powered Siri is still on the horizon, Tim Cook assures us “good progress” is being made on a more personalized experience. Unlike its Big Tech rivals who are splashing billions on AI infrastructure, Apple is taking a different route, opting for strategic, “significant” investments in artificial intelligence. Is this a calculated gamble, or a recipe for AI dominance? Only time will tell if Apple’s patient approach will pay off.

“Apple’s AI vision isn’t about raw power; it’s about seamlessly weaving intelligence into your life. We’re taking cutting-edge AI and making it intuitive, putting its extraordinary capabilities within everyone’s reach.”

Europe’s regulatory hammer is poised to strike Apple’s golden goose – the App Store. While Cupertino raked in a cool $27.42 billion from its services empire, exceeding analyst predictions of $26.8 billion, looming rulings across the Atlantic could dramatically reshape the digital landscape, jeopardizing a key pillar of Apple’s financial success. The question now is: how will Apple adapt as the walls of its walled garden begin to crumble?

Apple’s Q[Quarter number] earnings painted a mixed picture. While Mac sales soared to $8.05 billion, leaving the $7.26 billion forecast in the dust, the wearable tech arena, typically a star performer, stumbled. AirPods and Apple Watch sales clocked in at $7.4 billion, a noticeable dip below the anticipated $7.82 billion. iPads also felt the chill, with $6.58 billion in sales falling short of the $7.24 billion target. The tale of two product lines leaves investors wondering: Is this a temporary blip, or a sign of shifting tides in the tech giant’s portfolio?

Apple’s profit machine keeps humming. Fiscal third-quarter gross margins defied gravity, hitting a sweet 46.5%, leaving Wall Street’s 45.9% predictions in the dust, per LSEG. Not content with exceeding expectations, Apple hinted at even sunnier days ahead. The tech giant projects margins between 46% and 47% for the current quarter, a range that sits comfortably above the 45.9% consensus, according to LSEG data.

© Thomson Reuters 2025

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