Apple (AAPL.O) lately gave a revenue forecast for the present quarter, ending in September, that greatly exceeded Wall Street’s expectations. This revenue forecast announcement, made on Thursday, led to a rise in the company’s shares even with CEO Tim Cook’s warning about the effect of U.S. tariffs, expected to add $1.1 billion in expenses over this period.
A major component of the United States’ trade dispute with President Donald Trump is these tariffs, which had already cost Apple $800 million in the earlier June quarter. They also urged some consumers to buy iPhones sooner than normal, notably in late spring this year. LSEG reported that Apple’s fiscal third-quarter sales, buoyed by such early buys, exceeded revenue forecasts by the greatest margin in at least four years.
Despite the obstacles posed by tariffs, Apple is still optimistic about growth in revenue forecast. According to LSEG data, Apple recorded $94.04 billion in revenue in its fiscal third quarter, which concluded June 28, a little less than 10% greater than the same time last year and above analyst expectations of $89.54 billion. At $1.57, the company’s earnings per share exceeded the expected $1.43.
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Apple’s stock increased 3% in after-hours trading following the publication of its revenue forecast, thereby building on its upward momentum. Sales of iPhones, the company’s best-selling product based in Cupertino, California, increased 13.5% to $44.58 billion, beating analyst revenue forecast of $40.22 billion. Reacting to the tariffs, Apple has been changing its manufacturing methods, sourcing iPhones from India and other products like Macs and Apple Watches from Vietnam.
Many of Apple’s goods’ final tariff rates are still unknown, and some of its products presently benefit from exemptions. Sales inside its Americas sector, which includes the United States and could be impacted by taxes, climbed by 9.3% to reach $41.2 billion.