Apple has once again demonstrated its formidable market prowess, forecasting revenue significantly above Wall Street’s estimates following a remarkably strong June-quarter performance. This surge was primarily propelled by robust customer demand for iPhones, with many consumers reportedly making purchases earlier than usual to mitigate the impact of anticipated tariffs, showcasing a strategic consumer response to economic uncertainties.
Chief Financial Officer Kevan Parekh conveyed optimism, projecting revenue growth for the current quarter to be in the “mid to high single digits.” This outlook comfortably surpassed the 3.27% growth to $98.04 billion that analysts, as per LSEG data, had previously anticipated, signaling Apple’s confident stride into the next fiscal period.
For its fiscal third quarter, which concluded on June 28, Apple reported an impressive $94.04 billion in revenue, marking a nearly 10% increase from the prior year. This figure not only exceeded analyst expectations of $89.54 billion but was also accompanied by strong earnings per share of $1.57, outperforming the projected $1.43 per share, according to LSEG data.
The Cupertino-based tech giant’s flagship product, the iPhone, remained a significant growth driver, with sales escalating by 13.5% to reach $44.58 billion. This substantial increase comfortably beat analyst forecasts of $40.22 billion, underscoring the enduring appeal and market dominance of Apple’s smartphone lineup, even amidst global economic headwinds and supply chain considerations.
In a strategic move to navigate the volatile landscape of international trade and potential global tariffs, Apple has been actively diversifying its manufacturing footprint. The company is increasingly sourcing iPhones from India and other products like Macs and Apple Watches from Vietnam, a proactive measure aimed at mitigating potential tariff impacts on its global supply chain and ensuring continued access to key markets.
Despite facing considerable hurdles in key international markets, particularly in China where the company has encountered delays in securing approval for the introduction of its advanced AI features on devices, Apple’s performance remained resilient. Sales in China reached $15.37 billion, surpassing both prior year figures and analyst expectations of $15.12 billion, as revealed by a survey of five analysts from data firm Visible Alpha.
Tim Cook, Apple’s CEO, noted in a Reuters interview that the quarter saw seasonal records for upgrades across iPhones, Macs, and Apple Watches. He estimated that approximately one percentage point of the quarter’s 9.6% sales growth was directly attributable to customers accelerating their purchases in anticipation of potential tariffs, highlighting the strategic advantage derived from consumer foresight. Analyst Jacob Bourne from Emarketer corroborated this, emphasizing that despite being a typically slow quarter for Apple, these results, particularly iPhone growth, were exceptional.
In stark contrast to AI industry leaders like Microsoft and Nvidia, whose stock market valuations have soared to unprecedented levels, Apple’s shares experienced a 17% decline in 2025. Investors are expressing growing concerns regarding the implications of escalating trade tariffs and what they perceive as a slower pace in integrating sophisticated artificial intelligence capabilities into Apple’s diverse product ecosystem.
Beyond its core hardware, Apple’s services business, which encompasses the highly profitable App Store along with music and cloud storage, contributed significantly, bringing in $27.42 billion and exceeding analyst expectations of $26.8 billion. While Mac sales also outperformed expectations at $8.05 billion, other categories like wearables ($7.4 billion) and iPads ($6.58 billion) slightly missed their respective estimates, despite the company’s robust overall financial health, marked by gross margins of 46.5%.
