**Apple Reports Strong Quarterly Profit Amid Tariff Concerns**
Apple announced a quarterly profit of $23.4 billion on Thursday, exceeding expectations despite worries about the impact of U.S. tariffs on its supply chain. The company reported revenue of $94 billion for the typically slow quarter ending in June. Tim Cook, Apple’s CEO, expressed pride in achieving a record revenue for the June quarter, highlighting double-digit growth in iPhone, Mac, and Services across all geographic segments.
Following the announcement, Apple shares rose by more than two percent in after-hours trading. iPhone sales during the quarter reached $44.6 billion, up from $39.3 billion in the same period last year. According to market tracker Canalys, global smartphone shipments slightly declined to 288.9 million units in the recently concluded quarter, with Samsung leading the market by shipping 57.5 million smartphones, while Apple secured the second position with 44.8 million iPhones shipped, a two percent decrease.
Canalys noted that Apple demonstrated strong resilience amid intense competition in China and an inventory correction in the U.S. due to the rapidly changing tariffs. Cook mentioned that the Trump administration’s tariffs cost Apple approximately $800 million in the last quarter. He also indicated that most iPhones sold in the U.S. are expected to come from India as Apple adapts to the ongoing trade tensions between the U.S. and China.
While iPhones manufactured in mainland China still dominate U.S. shipments, production in India is increasing, according to market analysts. Recently, the Trump administration announced a 25 percent duty on imports from India, slightly lower than previously threatened, following unsuccessful trade negotiations between Washington and New Delhi. This has led to reciprocal tariffs, with significant U.S. levies imposed on China and retaliatory measures from Beijing.
In terms of sales, iPhone revenue in mainland China rose to $15.4 billion in the quarter, compared to $14.7 billion in the same period last year. Additionally, Apple’s services segment, which includes digital content and subscriptions, saw revenue grow to $27.4 billion during the quarter.
In conclusion, Apple’s latest financial results reflect its ability to navigate challenges posed by tariffs and competition, showcasing growth in key areas and a strong performance in the global market.
**FAQ**
**Q: How did U.S. tariffs impact Apple’s profits?**
A: Apple estimated that the tariffs imposed by the Trump administration cost the company around $800 million in the last quarter.