San Francisco: Apple has posted a better-than-expected revenue forecast for the quarter ending in September, lifting its share price in after-hours trading.
Despite facing a projected cost of $1.1 billion (£829 million) due to US tariffs, the company expects revenue growth in the ‘mid to high single digits’, which would outpace analysts’ projected 3.27 percent increase to $98.04 billion (£73.9 billion), according to LSEG.
For its fiscal third quarter, which ended on June 28, Apple reported revenue of $94.04 billion (£70.8 billion), marking a 10 percent year-on-year increase and exceeding analyst estimates of $89.54 billion (£67.4 billion). Earnings per share reached $1.57 (£1.18), above the $1.43 (£1.08) predicted.
Apple’s CEO Tim Cook warned that the ongoing US tariffs, central to the Trump administration’s trade policy, would significantly impact the company’s costs. The tariffs added $800 million (£603 million) in expenses during the June quarter alone and are anticipated to add a further $1.1 billion (£829 million) this quarter. The company attributed some of its revenue boost to customers purchasing iPhones earlier than expected in late spring, ahead of potential price increases due to tariffs.
Sales of iPhones, Apple’s flagship product, reached $44.58 billion (£33.6 billion), up 13.5 percent from the previous year and comfortably ahead of the $40.22 billion (£30.3 billion) forecast. The Americas region, which includes the U.S. and is most directly affected by the tariff landscape, saw revenue rise 9.3 percent to $41.2 billion (£31.1 billion).
In Greater China, Apple has faced regulatory delays in rolling out AI features, but still recorded strong performance with revenue of $15.37 billion (£11.6 billion), slightly above expectations. A survey from Visible Alpha confirmed the company exceeded the region’s average analyst estimate of $15.12 billion (£11.4 billion).
To mitigate the impact of US tariffs, Apple has shifted elements of its production line. iPhones destined for the US market are increasingly being sourced from India, while other devices such as Macs and Apple Watches are now produced in Vietnam. Despite these efforts, the final tariff status for many Apple products remains uncertain, though several are currently exempt.
Chief Financial Officer Kevan Parekh stated that, revenue growth is anticipated to remain solid going into the next quarter, reflecting a robust demand environment and strategic resilience. Investors responded positively, with Apple shares climbing 3 percent in after-hours trading following the earnings announcement.
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