Robust iPhone sales propel Apple's earnings past projected figures
Apple has reported a robust performance in Q3 2025, defying the impact of the US-China trade war. The tech giant's revenue reached a record high of $94 billion, marking double-digit growth in iPhone sales globally, including strong demand in China.
Despite tariff-related costs and trade tensions, Apple's revenue from iPhone sales was $44.6 billion, an increase from $39.3 billion in the same quarter last year. This impressive growth was not due to tariff-induced "pull forward" effects, according to Apple's CEO, Tim Cook. Instead, he attributed the strong iPhone sales to the product’s quality, with the iPhone 16 family growing double digits compared to the previous year’s model.
The company's commitment to US investments, amounting to $500 billion, is aimed at addressing supply chain and manufacturing concerns amid political pressures to shift production out of China. This move may influence future tariff impacts.
Apple's performance in the services business also showed strong growth, with revenue increasing to $27.4 billion in the quarter. The company's Mac sales also saw double-digit growth during the same period.
In a significant move, production of iPhones in India is ramping up, indicating a potential shift in Apple's manufacturing strategy. However, the Trump administration's imposition of a 25 percent duty on India, scheduled to begin on Friday, could impact this trend.
Sales of iPhones in mainland China were $15.4 billion in the quarter, compared with $14.7 billion in the same period a year ago. This growth demonstrates Apple's resilience amid fierce competition in China and an inventory correction in the US.
Global smartphone shipments fell marginally to 288.9 million units in the recently-ended quarter. Despite this, Apple finished second in smartphone shipments, with Samsung leading the market with 57.5 million shipments.
Apple's resilience in the face of geopolitical challenges was evident in its earnings, which surprised positively, sending shares up post-earnings. The company's core product line continues to show strength, despite the ongoing trade war and concerns about competitiveness in AI.
In summary, while tariffs due to the US-China trade war impose substantial costs on Apple, the company’s revenue and iPhone sales have shown strong growth recently, driven by product demand and robust sales in China, helping to offset trade-related financial pressure. The company's strategic investments and manufacturing shifts, such as the ramping up of production in India, are expected to further strengthen its position in the global market.
The growth in Apple's iPhone sales can be attributed to the product's quality, with the iPhone 16 family growing double digits compared to the previous year’s model, demonstrating strength in the technology sector. Additionally, Apple's finance department saw impressive growth in the services business and Mac sales, indicating a strong performance in these areas of the business.
