Apple has overcome tariffs and slow progress in artificial intelligence to accelerate revenue growth in the spring quarter, but the tech giant still faces tough challenges that could lead to higher iPhone prices.
The results, published on Thursday for the April-June period, came amid a backdrop of headwinds raising concerns about the future of the long-time tech leader, which is set to take a hit of almost $2bn (£1.5bn) from tariffs already imposed by President Donald Trump and others in the pipeline.
Despite the doubts, Apple remains a powerful money-making machine.
The company earned $23.4 billion (£17.8 billion) in its third financial quarter, up 9% on the same period last year.
Revenues were up 10% on last year to $94bn (£71bn), with iPhone sales up 13% on last year to $44.6bn (£33.8bn).
Another positive development was that Apple's business in China showed signs of emerging from a long-running downturn, with revenue up 4% year-on-year.
All of the data significantly exceeded analysts' expectations, which serve as a guide for investors, helping Apple's recently slumping stock price rise about 3% in after-hours trading.
However, unexpectedly strong results do not necessarily indicate that all is well for Apple.
Mr Trump's trade war targeting foreign-made products such as the iPhone and Apple's poor start to a major shift into artificial intelligence are raising doubts among investors about whether the company can remain a tech leader amid new industry challenges.
At the time of publication on Thursday, Apple's share price had fallen 17% year-to-date, costing shareholders more than $600bn (£455bn) and leaving the company as the world's most valuable company.
Meanwhile, shares in AI chip maker Nvidia have risen 32% this year, while AI market leader Microsoft has gained 27%, giving it a market capitalisation of $4 trillion (£3 trillion).
While Apple is still making significant profits, tariffs imposed by Mr Trump on China and other countries in the last quarter cost the company $800 million (£600 million)
Sourse: breakingnews.ie
