Apple iPhone sales soar, beating Wall Street expectations

Apple’s iPhone sales surged 13% in the June quarter, beating Wall Street expectations, as Americans rushed to buy devices ahead of expected tariff-related price hikes.

Total revenue climbed 10% year-over-year to $94 billion. Apple shares rose about 3% in after-hours trading. 

Gross profit margin hit 46.5%, surpassing the 45.9% estimate.

Apple softened a 20% tariff impact by shifting some iPhone production from China to India. Still, it absorbed $800 million in tariff costs, which could rise to $1.1 billion next quarter. 

About one-sixth of the sales surge came from tariff-driven demand, while the rest stemmed from strong upgrades.

China sales rose 4%, reversing past declines. Apple now eyes higher margins with a pricier, slimmer iPhone expected in September and a growing services business, which includes App Store.

Apple has sold 3 billion iPhones since 2007. The tech giant hit its first billion in 2016 and doubled that figure in just nine more years.