Apple iPhone selling like hot cakes thanks to Trump

Apple released its third-quarter revenue figures yesterday. CEO Tim Cook was pleased to announce the strongest jump in revenue since the coronavirus pandemic. This was largely due to the sharp increase in iPhone sales, which significantly exceeded expectations. According to CFO Kevan Parekh, the company recorded a record number of active devices across all product categories and markets. Revenue from iPhone sales rose over 13% to $44.6 billion, six times higher than forecasts. Total group revenue reached $94 billion, an increase of almost 10% – Apple's highest revenue ever in the April-to-June period.

Expected US tariffs are the reason for Apple iPhone purchases

According to CEO Tim Cook, part of the growth was due to preparations for potential US tariffs. Many customers replaced their older devices with new models, primarily iPhones and Macs, marking a historic high for Apple in device replacement. While analysts had expected a pull-forward effect, the sales figures are nevertheless considered exceptional in what is traditionally a quiet quarter. This positive development was also reflected in the stock market.

iPhones for the US market are mostly manufactured abroad, primarily in China. While smartphones are currently exempt from import tariffs, increasing tensions between the US and China led Apple to relocate some of its production to India. However, starting August 1, Indian goods will also face tariffs of 25%. Despite the new burdens, experts estimate that manufacturing in India will be more cost-effective in the long term. Apple estimates the additional trading costs at around $800 million last quarter, with another $1.1 billion in the current quarter.

Acquisition of AI companies needed for Apple Intelligence

There have also been initial signs of recovery in the Chinese market, where Apple is under increasing pressure from manufacturers such as Huawei and Xiaomi. Discount campaigns have helped boost sales and halt the downward trend. Competing brands have been particularly successful in regard to AI capabilities, where Apple been comparatively hesitant thus far. However, CEO Cook has announced that Apple will invest more specifically in this area in the future to avoid being left behind. The possible acquistion of AI companies such as Perplexity and Mistral, announced by Bloomberg (paywall), could deliver the success promised at WWDC25 in the short term.