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Apple Posts Its Strongest Quarterly Growth Since 2021, Prepares AI Push and Shifts Manufacturing to India

Robust iPhone sales with double-digit gains in Services enabled Apple to absorb $800 million in tariff costs for the quarter.

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Overview

  • Apple’s Q2 revenue rose 10% year-on-year to $94 billion, marking its largest quarterly gain since December 2021, while net profit climbed 8.5% to $23.43 billion.
  • iPhone revenue jumped 13% to $44.6 billion, outperforming analyst estimates and driving the bulk of the company’s growth.
  • The company incurred $800 million in Trump-era tariff costs—$100 million below its forecast—and attributes about one percentage point of revenue growth to customers advancing purchases.
  • Approximately half of the iPhones sold in the US during the quarter were manufactured in India as Apple accelerates supply chain diversification to curb tariff exposure.
  • Tim Cook announced a significant ramp-up in AI investment and confirmed Apple’s openness to acquisitions of any size to accelerate its AI development.