Apple Reports 13.5% iPhone Sales Surge Amid US Tariff Fears

Apple reported a strong third-quarter fiscal performance with $94.04 billion in revenue and a net profit of $23.4 billion, driven largely by a 13.5% surge in iPhone sales. This surge was fueled by consumer panic buying ahead of anticipated U.S. tariffs, particularly under President Trump's reciprocal tariff policies, which are expected to add $900 million in costs for Apple. The company has been actively adjusting its supply chain, shifting much of iPhone production to India to mitigate the tariff impact, with plans to expand production there to about half of global output. Despite this growth, analysts remain cautious about the sustainability of the tariff-induced sales spike, noting that much of the demand may have been pulled forward. Apple also faces challenges due to slower adoption of AI technology compared to rivals and evolving regulatory pressures, including adjustments to its App Store fees to comply with EU rules. Tim Cook highlighted that while tariff-driven buying boosted sales growth, ongoing tariff uncertainties, including new tariffs on imports from India, may force price increases on upcoming products like the iPhone 17.