By Michael Lietke, Associated Press
SAN FRANCISCO (AP) — Apple has rocked bushes and intrusions into artificial intelligence to accelerate revenue growth in the spring quarter, but trendsetting tech companies still face bumpy roads that could lead to rising iPhone prices.
The April-June results released on Thursday opposed the background of adversity that has caused concern about the long-standing trajectory of the high-tech kingpin.
Despite doubt, Apple remains a money-making machine.
The Cupertino, California company won $23.4 billion, or $1.57 per share in the third quarter. This is an increase of 9% from the same time last year. Revenues rose 10% to $94 billion a year ago. The company’s iPhone sales rose 13% from a year ago to $44.6 billion. All of these figures have far surpassed the forecasts of analysts piloting investors, helping to boost Apple’s recent stock price by 2% in trading that expanded.
However, unexpectedly solid performance doesn’t necessarily mean that Apple is voyaging smoothly.
President Donald Trump’s trade war has led investors to question whether the company will remain at the forefront of technology as the industry moves into a new era, with the extreme trade war on AI targeting foreign-made products, such as the iPhone and Apple’s stumbling start.
Before Thursday’s report was released, Apple’s stock price fell 17% so far this year, wiping out more than $600 billion in shareholder assets and fell from its perch as the world’s most valuable company. Meanwhile, AI Chipmaker Nvidia’s stock has skyrocketed 32% this year, while AI Pacesetter Microsoft’s stock has won 27%, driving its market value to $4 trillion.
Apple remains extremely profitable, but the tariffs Trump has already imposed on China and other countries have cost $900 million over the past quarter, and more financial pains are looming as his administration threatens to increase fees.
Apple has eased Trump’s tariff hit on products made outside the US by shifting IPHONE production from China to India in the past quarter. However, the administration intends to impose a 25% tariff on goods from India. This is a move that could bolster pressure on Apple to raise the price of the next-generation iPhone, which is expected to be released in September.
Meanwhile, Apple is still trying to meet the AI promise it made when it unveiled new iPhone features built on innovative technology last year, with the shift hopeful millions of people will upgrade their old devices. However, Apple has not yet been delivered with AI upgrades that are supposed to cleverly make Siri, the often broken virtual assistant, one of the main reasons behind the inactive growth of iPhone sales.
“There are two big questions looming at Apple: how are you going to re-align your business model to address the background of the new tariffs? And what will the company do to drive the iPhone upgrade cycle?” said Melissa Otto, visible Alpha stock market analyst at S&P.
Original issue: July 31, 2025, 4:57pm EDT
