Apple's iPhone Sales Surge, China Market Warms Up; Q3 Revenue Growth Hits Three-Year High

Apple (AAPL.US) has announced its third-quarter revenue growth, which surpassed market expectations and reached a three-year high. The company attributed this growth to increased demand for iPhones and related products in China. According to Apple's statement, the company's revenue from June 28 to September 28 grew by 9.6% compared to the same period last year, reaching $940 billion. Analysts had predicted an average growth of $893 billion.

Looking Ahead, Apple Expects Overall Revenue to Grow 10% to 20% for the September quarter, Outperforming Analysts' Previous Forecast of 3%; Services Business Growth Rate Will Be Similar to This Quarter's 13%, and Gross Margin Is Expected to Be Between 46% and 47%, Even Including Costs Related to Tariffs.

Despite the impact of tariffs on Apple's operations, the company believes that this factor will only account for 1 percentage point of sales growth. In fact, Apple had previously expected a loss of $9 billion due to tariffs, but ultimately lost $8 billion. The company estimates that tariffs will increase expenses by $11 billion in the current quarter.

Tariff-related outlays were lower than expected, driving profit performance above expectations, with Apple's third-quarter gross margin reaching 46.5%, exceeding the average forecast of 60 basis points. The company also reported a rebound in its China market performance, where local brands have successfully attracted consumers and increased competition for Apple.

Apple CEO Tim Cook emphasized that the company sees growth momentum in most tracked markets, including China and many emerging markets, with global economic growth accelerating. Following this announcement, Apple's stock price rose by approximately 3% in after-hours trading, having fallen 17% so far this year.

Main Reasons for Revenue Surpassing Expectations Include iPhone Sales, Which Were Much Higher Than Market Expectations. iPhone Revenue Totaled $446 Billion, Up 13% from the Same Period Last Year and Outperforming Market Consensus by $45 Billion.