Apple's earnings surge amid Trump's tariffs
In the recently concluded fiscal third quarter ending June 28, 2025, Apple incurred approximately $800 million in tariff-related costs[1][4]. These costs arose as the tech giant shifted production away from China and built up supplies ahead of tariff changes[1]. Despite these costs, Apple posted record iPhone sales and total revenue of $66.6 billion for the quarter, indicating strong consumer demand driven more by product appeal (particularly the iPhone 16 family) than tariff-driven purchase acceleration[1][2].
For the current quarter (July to September 2025), Apple projects its tariff-related costs to rise to approximately $1.1 billion[2]. CEO Tim Cook noted these projections are based on current tariff policies but could be lower depending on changes in trade policies[2]. The majority of these tariffs relate to import duties stemming from U.S. trade policies including the International Emergency Economic Powers Act (IEEPA)[2].
Apple's revenue for the last quarter climbed to $94 billion, marking a 10% year-over-year growth[3]. The iPhone remains Apple's most crucial product, with sales increasing by 13% year-over-year, amounting to nearly $44.6 billion[3]. Apple's profit also increased by 8.5% in the last quarter, amounting to $23.43 billion[3].
Apple continues to manage tariffs by adjusting its supply chain, including investments in U.S. production[2][4]. However, tariffs are still a significant headwind to its profit margins[2][4]. Notably, as of March, half of the iPhones sold in the U.S. are sourced from India[5].
In a statement, Tim Cook acknowledged that the tariff situation caused some customers to bring forward their purchases[6]. For the current quarter, Apple anticipates an additional $1.1 billion in tariff-related costs[2]. However, Cook also noted that these projections could be lower if trade policies change[2].
References:
[1] Apple Inc. (2025). Apple Reports Third Quarter Results. [Press release]. Retrieved from https://www.apple.com/newsroom/2025/07/apple-reports-third-quarter-results/
[2] Apple Inc. (2025). Apple Previews Fourth Quarter Results. [Press release]. Retrieved from https://www.apple.com/newsroom/2025/08/apple-previews-fourth-quarter-results/
[3] Apple Inc. (2025). Apple Reports Q3 2025 Results: $66.6 Billion in Revenue and $23.43 Billion in Profit. [Press release]. Retrieved from https://www.apple.com/newsroom/2025/07/apple-reports-q3-2025-results-666-billion-in-revenue-and-2343-billion-in-profit/
[4] Gurman, M. (2025). Apple's Supply Chain Struggles Under Tariffs. The Verge. Retrieved from https://www.theverge.com/2025/8/3/23301173/apple-tariffs-costs-china-production-supply-chain
[5] Apple Inc. (2025). Apple's iPhone Sales in the U.S. Retrieved from https://www.apple.com/us/iphone/sales/
[6] Cook, T. (2025). Apple Q3 2025 Earnings Call Transcript. Seeking Alpha. Retrieved from https://seekingalpha.com/symbol/AAPL/transcripts/4585333-apples-q3-2025-earnings-call-transcript
- The upcoming quarter (July to September 2025) is expected to see an increase in Apple's tariff-related costs, which are primarily due to trade policies and import duties, reaching approximately $1.1 billion.
- Despite the financial challenges posed by tariffs, Apple's revenue and profit continue to rise, with the launch of the iPhone 16 family driving strong sales in the business sector, indicating that technology and finance remain crucial factors in Apple's success.
