Apple reported its highest March-quarter revenue in over two years, reaching $95 billion, as customers rushed to purchase devices ahead of potential new U.S. tariffs. As a result of the ongoing trade war with China, the tech giant announced that the majority of U.S. iPhones would come from India, while iPads and other devices would be imported from Vietnam.
The Wall Street Journal reports that Apple announced a significant surge in revenue for the March quarter, driven by strong demand for iPhones and other devices as customers moved to make purchases before the introduction of new U.S. tariffs in April. The tech giant reported a five percent increase in sales, reaching $95 billion, surpassing analyst expectations. Net income for the quarter also rose by nearly five percent compared to the same period last year, reaching $24.8 billion.
One of the key factors contributing to the strong sales was the release of the iPhone 16e during the quarter. This lower-end model, which features limited artificial intelligence capabilities, helped drive demand alongside the pre-tariff buying rush. However, Apple faces ongoing challenges due to its exposure to China, where most of its devices have been traditionally assembled. The company has been one of the hardest hit by the Trump administration’s global tariff pressure, with shares taking a significant hit after the announcement of the Liberation Day tariffs.
Despite a temporary reprieve on reciprocal tariffs for smartphones, Apple still faces potential duties of 20 percent on imports from China and 10 percent on those from India, as the administration continues to consider further actions that could impact tech companies. The company is also grappling with stagnating iPhone sales, particularly in the China region, where customers have increasingly shifted to local brands. This trend could persist as U.S. brands lose appeal amidst the ongoing trade war.
In response to the trade war, Apple announced that most of the iPhones sold in the U.S. in the current quarter will come from India, while other devices like iPads will be imported from Vietnam. The company, which has always had a close relationship with China, is clearly decoupling from the communist country.
Breitbart News recently reported that Apple has been steadily increasing its manufacturing capacity in India in recent years through partnerships with contract manufacturers like Tata Electronics and Foxconn.
Apple’s bottom line faces additional threats. The company also derives a significant portion of its operating profit, estimated at around 25 percent, from royalties paid by Google to be the default search engine in Apple’s Safari web browser. However, these payments, which could amount to as much as $20 billion annually, may disappear in the near future following a federal judge’s ruling that declared them illegal on antitrust grounds.
Apple also faces legal challenges related to its App Store policies, with a federal judge demanding remedies that could impact another high-margin revenue stream if developers successfully persuade customers to purchase apps directly. The judge’s extraordinary step of referring the matter for a criminal contempt investigation due to Apple’s conduct could prove to be a significant distraction for the company.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
