Despite global market turbulence fueled by heightened tariffs, Apple delivered a powerhouse performance in its latest quarter, shattering analyst expectations. Revenue surged 10% to $94 billion—far exceeding projections of $89.3 billion—while profits jumped 8.5% to $23.43 billion, even as $800 million in tariff-related costs bit into margins. The stock rallied over 2% in after-hours trading, reflecting investor optimism.
iPhone and China Drive Growth
The iPhone remained Apple’s crown jewel, with sales skyrocketing 13% to $44.6 billion, outpacing even bullish forecasts. The latest iPhone 16 series outperformed its predecessors, while strategic consumer purchases ahead of tariff hikes added a 1% growth boost. Equally surprising was Apple’s 4% rebound in Greater China, a market where geopolitical tensions had previously weighed on results. Meanwhile, services revenue climbed 13% to $27.4 billion, underscoring the company’s pivot toward recurring income streams. However, looming tariff costs of $1.1 billion next quarter could test resilience, even as Apple shifts production to India to mitigate trade pressures.
