Apple reported its highest quarterly revenue growth since December 2021, with a 10% year-on-year increase to US$94 billion for the quarter ending June 28, 2025.

IPhone sales rose 13% to US$44.6 billion, while Mac revenue increased nearly 15% to US$8.1 billion.

The services business grew 13% to US$27.4 billion. However, iPad and wearables revenue declined 8% each.

Net income rose to US$24.4 billion, or US$1.6 per share, beating analyst expectations.

Sales in China, including Hong Kong and Taiwan, climbed 4% to US$15.4 billion, reversing previous declines.

CEO Tim Cook said Apple will increase its investment in AI and remains open to acquisitions that support its strategy.

The company reported US$800 million in tariff costs for the quarter and expects up to US$ 1.1 billion in the next quarter if conditions remain unchanged.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Trade policy creates artificial demand spikes that mask underlying business performance

Apple’s earnings reveal how tariff concerns can significantly distort normal purchasing patterns and inflate short-term revenue figures.

CEO Tim Cook disclosed that approximately 1 of Apple’s 10 percentage points of revenue growth came from customers buying products ahead of potential tariff increases1.

This tariff-driven purchasing contributed to Apple beating revenue expectations by $4.5 billion, reaching $94 billion versus the expected $89.5 billion1.

The company faces escalating tariff costs, from $800 million this quarter to a projected $1.1 billion next quarter, demonstrating how trade policies create both artificial demand surges and rising operational expenses2.

This pattern suggests that Apple’s impressive 10% revenue growth—its highest in four years—may be partially unsustainable once the tariff-driven buying subsides3.

The phenomenon illustrates how external policy factors can create misleading signals about a company’s underlying market demand and competitive position.

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