Apple’s Tariff-Boosted iPhone Sales Seen as Short-Lived

Apple achieved its highest revenue growth since 2019 but investors expressed doubts about iPhone sales sustainability because of upcoming tariffs.
The June quarter results showed a 13.5% increase in iPhone sales because customers bought devices early to avoid price increases and received Chinese government subsidies and purchased the affordable 16e model. The company achieved a 10% revenue increase while providing positive projections for the upcoming quarter.
Analysts pointed out that the current surge in sales consists mainly of “pull-forward” demand which will not persist. The Chinese government subsidy program became available to Apple Pro model customers which increased sales but created doubts about future market performance.
The company trails its competitors in AI development because it postponed Siri updates and started investing in AI at a late stage. Apple CEO Tim Cook announced significant AI growth while stating progress in Siri development but investors remain unconvinced.
The company expands its supply chain operations by producing iPhones in India and building Macs and Apple Watches in Vietnam. The ongoing U.S. trade negotiations with China and India expose Apple to tariff risks which could generate $1.1 billion in additional costs throughout this quarter.