Apple receives urgently needed iPhone and China boost
Apple receives urgently needed iPhone and China boost
Apple has reported strong sales of iPhones and a recovery of the income from China, which gives two important business areas of the company that weakened last year.
strong business growth
This better than expected performance has calmed down the Wall Street investors that central parts of the business remains stable, while Apple is trying to keep up with its competition in the race for artificial intelligence and navigate the upcoming tariffs of President Donald Trump.
In the past quarter, the iPhone achieved income of $ 44.5 billion, which exceeded the expectations of the analysts of $ 40 billion and exceeded the results of the previous year of $ 39.3 billion for the same period. The total income was $ 94 billion, which corresponds to an increase of 10 % compared to the previous year
The iPhone sales have also risen in China, where the company recently disappointed; The income rose from $ 14.7 billion in the third quarter of 2024 to $ 15.3 billion in the last quarter.
The Apple shares rose by a little more than 2 %. However, this is a significantly small increase compared to the tech giant Microsoft and Meta, which were able to increase their shares by almost 7 % or over 9 % due to their AI investments. Apple cut off much less than its competitors. The share price has fallen by almost 15 % this year, while the market has increased significantly in recent months.
iPhone as sales charm
The iPhone generates more sales than any other Apple product that makes it the most important business of the company in the eye of Wall Street. In a conference call with analysts that the company set a record in iPhone sale in the June Quartal, CEO Tim Cook said with growth of 13 % compared to the previous year.
The rapidly changing tariffs under Trump force Apple and other tech giants to rethink their manufacturing and shipping strategies for devices such as smartphones and computers. Investors are also interested in the fact that Apple plays a greater role in artificial intelligence, while other tech giants such as Google, Meta and Microsoft are progressing.
With regard to customs-related costs,Apple had around $ 800 million of expenses, which is less than $ 900 million that CEO Tim Cook predicted in May. For the September Quartal, Apple expects that this amount, provided the current customs guidelines and sentences remain the same, will increase to $ 1.1 billion, according to Cook.
In order to escape the tariffs from Trump, Apple relocated the production facility for iPhones that are delivered to the USA, from China to India at the beginning of this year. Smartphones were excluded from previous mutual tariffs on China, which would have increased the duty to astonishing 145 %. However, it has also been announced that companies like Apple and Samsung threatens to do a customs of 25 % unless they provide their smartphones in the USA. A preliminary trade agreement between the two major economies will be left at 30 % by August 12th, while Trump India at the beginning of this week with tariffs from up to 25 % threatened.
challenges in the area of KI
beyond the tariffs, Apple faces further challenges for the future of its business. The company is perceived as in accordance with artificial intelligence, a crucial technology that many believe that it will influence the economy and change the way in which people will work, communicate and find information.
A significant update of Siri, which the voice assistant should bring to a stand with modern AI agents such as Openais Chatgpt and Google's Gemini, was postponed for an indefinite period. In the analyst conference, Cook explained that Apple made “good progress” with the improved Siri and that the new version should be released next year. In the meantime, Apple's suite of AI functions and apps, such as a custom emoji generator, comprises the ability to summarize texts, and an image generator-tools that are practical, but do not have the same influence as services as chatt.
"We also significantly increase our investments," said Cook during the call. "Apple has always had the goal of simply using the most advanced technologies and making it accessible to everyone. This is the heart of our AI strategy with Apple Intelligence."
In the past few weeks, Apple has also lost important AI researchers to Meta, while the social media giant aggressively expands its efforts in the AI area, so Bloomberg . Two analysts from Lightshed Partners caused a sensation at the beginning of this month when they questioned whether
"He is a specialist for the supply chain. You need a technological visionary," said Ted Mortonson, managing director and strategy consultant at the financial services company Baird, previously to CNN. "I think you are in greater danger than many people think." Also the lucrative service business of Apple - which is the second largest business after the iPhone - is under pressure because legislators introduce new rules that influence, like Apple managed his app store to take into account competitive concerns.
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