Apple Defies Tariffs with Stellar Revenue Forecast
Apple posted strong revenue forecasts, surpassing Wall Street expectations, attributed to early iPhone purchases due to impending tariffs. Despite a $800 million cost from tariffs, sales rose significantly, with iPhone and services showing remarkable growth. Challenges remain with AI integration and regulatory pressures in Europe.
Apple has defied expectations with a promising revenue forecast that exceeded Wall Street's predictions, supported by strong sales in the June quarter despite looming tariffs. The tech giant's Chief Financial Officer, Kevan Parekh, projected revenue growth within the 'mid to high single digits' range, outperforming analysts' expectations of 3.27%.
CEO Tim Cook indicated that tariff-related costs burdened the company by $800 million during the June quarter and might add another $1.1 billion in the current quarter. Apple cited strong demand for iPhones, its top-selling product, with sales climbing 13.5% to $44.58 billion, surpassing predictions of $40.22 billion.
As Apple relocates its production, sourcing iPhones from India and other products from Vietnam, the effects of tariffs remain uncertain. A key market, Greater China, also experienced sales upsurge, recording $15.37 billion, which reversed the previous decline. Efforts to expand AI and facing competition from tech rivals like Samsung and Alphabet are part of the ongoing challenges Apple is addressing.
(With inputs from agencies.)
Google News