Apple beats estimates with $94 billion revenue; India's iPhone exports rise

Apple posts $94 billion revenue in April-June quarter, beating Wall Street estimates as iPhone, services surge; India overtakes China as top US smartphone supplier

Apple Inc delivered its strongest quarterly revenue growth in more than three years, reporting $94 billion during the April-June quarter (Q3), significantly surpassing Wall Street expectations. The performance was driven by a rebound in iPhone demand, stronger sales in China, and continued momentum in the services division.

 

Apple's revenue rises $94 billion, beats expectations

 

Revenue rose by 9.6 per cent to $94 billion in the third quarter of the American financial year, according to the company’s announcement on Thursday (local time). Analysts had projected an average of $89.3 billion, according to a report by Bloomberg.

 

Apple also forecast that fourth-quarter revenue would increase by a percentage in the mid- to high-single digits, outperforming the 3 per cent rise predicted by analysts.

 

 

Chief Executive Officer Tim Cook said that they had seen an acceleration of growth around the world in the vast majority of markets we track, including Greater China and many emerging markets.

 

Consumers rush to buy iPhones ahead of Trump tariffs

 

Although US tariffs have raised Apple’s operating costs, they provided a temporary boost to sales last quarter, with consumers hurrying to buy products ahead of anticipated price hikes. However, Cook clarified that this accounted for only 1 percentage point of the overall 10-point sales gain.

 

The company has also been regaining ground in China, where domestic phone brands have been making headway with customers. Apple’s services division was another strong performer, beating Wall Street estimates.

 

iPhone, services drive strong performance

 

Apple shares climbed around 2 per cent in after-hours trading following the earnings release. The stock had fallen 17 per cent so far this year, trailing behind Nvidia Corp. and Microsoft Corp. in market valuation.

 

Apple had previously projected a $900 million impact from tariffs in the third quarter, expecting revenue growth in the low-to-mid-single digits.

 

On Thursday, the company reported that tariffs had ultimately cost it $800 million. It anticipates an additional $1.1 billion in tariff-related expenses during the current quarter.

 

Third-quarter earnings rose to $1.57 per share, exceeding the average estimate of $1.43. In China, Apple reported revenue of $15.4 billion, a 4.4 per cent increase from the same period last year. Wall Street had expected $15.2 billion in sales from the key market.

 

Apple generated $44.6 billion from iPhone sales during the June quarter, surpassing estimates of $40.1 billion.

 

In addition to the tariff-driven demand, the iPhone business was lifted by the February release of a new entry-level model named the 16e. Priced at $599, it significantly exceeded the cost of its predecessor, the $429 iPhone SE.

 

Apple is set to unveil its next generation of iPhones in September, with the models typically launching in the final weeks of the fiscal fourth quarter.

 

Services remained Apple’s fastest-growing segment, with third-quarter revenue climbing 13 per cent to $27.4 billion.

 

India overtakes China as top US smartphone supplier

 

India has surpassed China to become the largest exporter of smartphones sold in the United States, propelled by Apple Inc’s expansion of iPhone assembly in the country.

 

In the quarter ending June 30, 2025, shipments from India accounted for 44 per cent of the US market. Apple and other tech firms have been steadily shifting production away from China to mitigate risks linked to tariffs and escalating geopolitical tensions.

 

India and Vietnam have emerged as key alternatives in this supply chain strategy. The move has attracted criticism from US President Donald Trump, who has been urging companies to repatriate manufacturing jobs.