The constant threat of new tariffs from the President of the United States, Donald Trump, triggered an unexpected phenomenon for Apple: a wave of early iPhone purchases that boosted sales of the company’s flagship device during the third fiscal quarter of 2025. The company reported financial results that far exceeded Wall Street expectations, driven in part by the reactive behavior of consumers.
ALSO READ. Apple shatters expectations with its financial results: iPhone drives record revenue
Fears that iPhone prices would rise as a result of tariffs on goods imported from Asia—especially from China—led thousands of consumers to make early purchases, also known as “panic buying.”
According to Apple’s CEO, Tim Cook, this effect was notable: “We saw evidence in the early part of the quarter, specifically, of some pull-ahead related to the tariff announcements,” he said in an interview with Reuters. The company estimates that at least one percentage point of its sales growth for the quarter came from this market reaction.
ALSO READ. What is Lyme disease, the condition Justin Timberlake was diagnosed with?
How much did iPhone sales increase?
During the third fiscal quarter of 2025, Apple reported $44.582 billion in iPhone sales alone, representing a 13.5% increase compared to the same period the previous year. This figure far exceeded the $40.060 billion projected by analysts and became one of the pillars of the company’s financial performance.
Despite trade uncertainty, the number of active iPhone users reached a historic high across all regions, demonstrating the brand’s strength in the face of economic and political volatility.
What impact did tariffs have on Apple’s finances?
Although sales increased, tariffs also imposed significant costs on Apple. The company reported that U.S. tariffs cost it $800 million during the quarter that ended on June 28. Additionally, Tim Cook forecast that the impact could reach $1.1 billion in the next quarter.
In response to these challenges, the company decided to cut its share buyback program by $10 billion, a move that analysts interpret as a way to free up cash and remain flexible in times of trade uncertainty.
How did Apple respond to Trump’s tariff policy?
Apple has begun a reorganization of its global supply chain to reduce its dependence on China. It now assembles some of its U.S.-bound iPhones in India, while devices like the Mac and Apple Watch have started being manufactured in Vietnam.
This strategy is part of a broader effort to anticipate the trade policies of the Trump administration, which has even warned about the possible imposition of 25% tariffs on imports from India.
With the impact of tariffs still looming, Apple has projected continued growth in the next quarter, though it expects tighter gross margins due to additional costs. The company also plans to launch new artificial intelligence features in a more personalized version of Siri in 2026.
In addition, Apple announced an investment of $500 million in U.S.-based company MP Materials, and will open the Apple Manufacturing Academy in Detroit as part of its commitment to domestic manufacturing and reducing geopolitical risk.
How did the rest of Apple’s business perform?
Alongside the iPhone boom, Apple also saw strong performance in its Services division, reporting record revenue of $27.423 billion, driven by Apple Music, iCloud, App Store, and Apple TV+.
Furthermore, the company posted growth across all regions: from a 9.3% increase in the Americas to an impressive 20% in Asia-Pacific. In China, one of its most challenging markets, Apple managed to reverse the sales decline from the previous quarter, achieving revenue of $15.369 billion.
