Big win for Apple as 3B iPhones sold
What's the story
Apple has achieved a major milestone by selling its three billionth iPhone since the device was first introduced in 2007. The announcement was made by CEO Tim Cook during the firm's earnings call for the June quarter. Despite this achievement and a strong quarter with higher-than-expected iPhone sales, Apple is bracing for potential challenges in the coming months due to rising import tariffs.
Financial performance
Apple's strong earnings report
In the latest quarter, Apple generated $44.6 billion from iPhone sales, a 13% increase over the same period last year. The figure exceeded market estimates and accounted for nearly half of the company's total quarterly revenue of $94 billion. The iPhone continues to be Apple's most valuable product in terms of business value and consumer demand.
Tariff impact
Potential financial strain from tariffs
Despite the strong financial performance, Apple is gearing up for potential financial strain in the next quarter due to new tariff threats. Cook said that Apple expects to incur roughly $1.1 billion in tariffs during the September quarter, a sharp jump from $800 million in the June quarter. The increase is tied to new import policies under President Donald Trump's administration, which could make it costlier for companies like Apple to import products made outside of the US.
Production relocation
Shift in production to India
To mitigate impact of these tariffs, Apple has moved a large chunk of its iPhone production for the US market to India. Cook confirmed that most iPhones sold in US are now made in India, and there have been no changes to this strategy recently.