Apple Inc. beat market expectations when it recorded revenue of $94.04 billion for the fiscal third quarter ended June 28, up nearly 10% from the same period last year.
This success was also supported by a 13.5% jump in iPhone sales to $44.58 billion, far exceeding analysts' estimates of $40.22 billion.
According to Apple CEO Tim Cook, the encouraging performance was also driven by early purchases by consumers concerned about the risk of new tariffs from the United States (US), in addition to strong growth in the services and Mac segments.
Apple also announced a gross profit margin of 46.5%, beating market expectations of 45.9%. Revenue from services such as the App Store, music and cloud storage reached $27.42 billion, also exceeding expectations.
However, not all segments recorded positive performance as sales of wearable devices such as the Apple Watch and AirPods fell short of targets, while iPad sales also declined.
Apple is now stepping up investments in artificial intelligence (AI) to compete with major rivals such as Alphabet and Samsung, although it has yet to launch a new version of its virtual assistant, Siri, enhanced with AI.
Meanwhile, tariff uncertainty under President Donald Trump's administration continues to overshadow Apple's operations, even as the company actively shifts its supply chain to countries such as India and Vietnam.
Apple is also seen reducing its $10 billion share buyback program as a precautionary measure in a challenging global economic environment.
