Apple hits 3 billion iPhones sold as sales jump 13%, but tariffs to cost $1.1 billion next quarter

Apple has officially sold over 3 billion iPhones since the device first hit the market in 2007. The milestone was confirmed by CEO Tim Cook during the company's latest earnings call for the third quarter.

In Short

• Apple has sold 3 billion iPhones since 2007 launch
• iPhone sales grew 13 percent in the June quarter, earning $44.6 billion
• Apple expects to face $1.1 billion in tariff costs next quarter

Apple has crossed a major milestone, selling 3 billion iPhones since the launch of the first model in 2007. The announcement was made by CEO Tim Cook during the company’s earnings call for the June quarter. However, while the company had plenty to celebrate with a strong quarter and higher-than-expected iPhone sales, there are signs that the next few months may bring new challenges due to rising import tariffs.

In the latest quarter, Apple earned $44.6 billion from iPhone sales, up 13 per cent compared to the same time last year. This beat market estimates and contributed to nearly half of the company’s total revenue for the quarter, which stood at $94 billion. The iPhone remains Apple’s most important product in terms of business value and consumer demand.

The company also saw a slight improvement in China, a market where it has been facing pressure recently. Revenue from the region increased from $14.7 billion to $15.3 billion year-on-year, offering some relief after several slower quarters.

Despite the good numbers, Apple is now preparing for possible financial pressure next quarter due to fresh tariff threats. Tim Cook said Apple expects to pay around $1.1 billion in tariffs during the September quarter, a sharp rise from the $800 million in the June quarter. This is linked to new import policies under the Trump administration, which may make it costlier for companies like Apple to bring in products made outside the US.

To manage this risk, Apple has already shifted much of its iPhone production for the US market to India. Cook confirmed that most iPhones sold in the US now come from India, and there have been no changes to this strategy in recent months.

While Apple shares did rise slightly (about 2 per cent) after the earnings report, that bump was modest compared to other tech players. Microsoft and Meta, for example, saw much larger gains due to their strong focus on artificial intelligence. Apple’s stock, on the other hand, is still down nearly 15 per cent for the year, as investors wait for a clearer AI roadmap from the company.

During the call, analysts asked Cook about Apple’s plans for AI and how the iPhone fits into a future where voice assistants and screenless tech may become more common. Cook responded by saying he sees the iPhone continuing to play a key role and that future technologies would likely support the iPhone, rather than replace it.

Meanwhile, some industry watchers believe the spike in iPhone sales could also be due to consumers rushing to buy before any tariff-related price hikes kick in. That may mean this quarter’s strong sales won’t necessarily continue in the next one.

- Ends