SAN JOSE, California, United States: Apple on Thursday posted a sharp rise in profits in its fiscal third quarter, driven by strong iPhone sales that helped offset the financial strain of import tariffs introduced by United States (US) President Donald Trump, German Press Agency (dpa) reported.
The US tech giant reported a net profit of USD23.4 billion for the quarter, up from USD21.4 billion in the same period last year.
Apple had earlier estimated that tariffs would cost the company around USD900 million during the quarter.
However, the actual burden was slightly lower at USD800 million, chief executive Tim Cook said during a conference call.
For the current quarter, Apple now expects tariff-related costs of USD1.1 billion.
Revenue rose 10 per cent year-on-year to around USD94 billion, with Cook noting in an interview with US broadcaster CNBC that around one percentage point of the increase was driven by advance purchases ahead of expected tariff hikes.
The iPhone business remained the company’s key driver, growing by 13 per cent to just under USD44.6 billion – well above analysts’ expectations of USD40 billion.
The iPhone is Apple’s most important product by far. Apple devices are mostly manufactured in Asia, including in China, India, and Vietnam.
High tariffs were gradually imposed on imports from these countries.
Three months ago, Cook said that around half of the iPhones sold in the US are now being shipped from India. – BERNAMA-dpa
