Apple Defies Tariffs: Record Growth in 2025 Despite Trade Wars

Tech giant shrugs off global trade tensions—revenue soars as supply chain pivots.

How Cupertino cracked the code on tariff-proof growth

While rivals flinch at trade barriers, Apple's ecosystem moat proves bulletproof. iPhone sales up 12% YoY despite 25% China tariffs—because when you're selling $1,200 pocket computers, what's another 6% to loyalists?

Services division now accounts for 30% of revenue (up from 15% in 2018), proving Tim Cook's hedge against hardware tariffs was prescient. Wall Street analysts—busy calculating their bonus pools—upgrade price targets by 18%.

The kicker? That 'Designed in California' label looking smarter than ever as import taxes hit competitors harder. Classic Apple—turning regulatory headwinds into a branding tailwind.

Closing thought: Maybe trade wars are good... if you're sitting on $200B in cash and can rewrite supply chain rules overnight.

Key Metrics

Apple Posts Strong Growth Despite Macro Headwinds

Investors came into earnings season with questions about Apple's ability to weather the impact of tariffs, and the company answered by reporting robust growth. Apple said revenue grew by 10% and earnings per share by 12%, boosted by stronger-than-expected iPhone growth in the quarter.

The sales growth, in a quarter marred by tariff talk, is a reminder of the enduring popularity of the iPhone and the success of a new, more affordable model released earlier this year. Apple has responded to the tariff concerns by shifting shipping patterns, with a majority of iPhones sold in the U.S. now reportedly assembled in India and not China.

Apple had forecast low- to mid-single-digit growth in the quarter, predicting a $900 million headwind from tariffs in the period.

Apple also returned to growth in China, posting sales of $15.4 billion for the quarter compared to $14.7 billion in the same three months of 2024.

The company did not provide a Q4 forecast in the earnings report, but is likely to give some guidance about what it expects in the second half of calendar year 2025 during its call with investors.

Immediate Market Reaction

Investors were happy with the results. Apple stock was up 2% in aftermarket trading immediately following the release but ahead of the company's call with investors.

What to Watch

Apple's numbers were strong, but that was expected. The big question with Apple is not about the numbers, but about what comes next. Apple's AI efforts have floundered so far, and top execs have fled to rivals. There have been reports that Apple could find a partner to bring AI to its devices instead of continuing to develop in-house.

Expect a lot of investor questions about AI on the call, as well as a focus on future devices that Apple can add to its offering along with phones, computers, iPads, and wearables. There is also still a looming uncertainty about tariffs, with tariff exemptions on smartphones expected to lapse and talk of new India tariffs that could further complicate supply chains.

Apple is yet to answer the question about the "next big thing," be it AI or a new device, but the company's Core franchises remain massively profitable and show no signs of sputtering from here.

Helpful Resources

• Full earnings report
• Investor relations page
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