iPhone Sales Surge 13.5% Amid US Tariff Concerns, But Investor Skepticism Lingers

Apple reported a 13% jump in iPhone sales for the April-June quarter, driven by strong demand for its lower-cost 16e model and Chinese government subsidies. Despite a 10% increase in total revenue and a forecast that exceeded Wall Street expectations, the company's share price dipped 1% as investors questioned the sustainability of these gains.

China's state subsidy program played a pivotal role, with Apple adjusting prices on its Pro models to qualify for incentives. "This isn't just happening in the US—China is part of the story too," noted MoffettNathanson analysts. The short-term boost, however, raises concerns about demand in the latter half of the year.

Trade tensions and lagging progress in AI continue to cast a shadow over Apple's outlook. The tech giant's reliance on subsidies and price adjustments underscores the fragility of its current momentum.