Apple Hits 3 Billion iPhones Sold Amid Surge in Sales, But Tariff Costs Loom

Highlights

Apple crosses 3 billion iPhones sold, with 13% sales growth, but faces $1.1 billion tariff burden next quarter.

Apple has officially marked a major milestone, with more than 3 billion iPhones sold since the revolutionary device first debuted in 2007. The announcement was made by CEO Tim Cook during the company’s third-quarter earnings call, where Apple reported stronger-than-expected iPhone sales and robust overall revenue performance.

In the quarter ending June 2025, iPhone sales jumped by 13%, raking in $44.6 billion, up from the same period last year. The iPhone alone accounted for nearly half of Apple’s total revenue of $94 billion, reaffirming its status as the tech giant’s flagship product in both consumer demand and revenue generation.

While Apple celebrated this success, Cook also acknowledged emerging challenges ahead—most notably, a sharp increase in import tariffs. The company is preparing for a $1.1 billion hit in tariff costs during the upcoming September quarter, a steep rise from the $800 million paid last quarter. These costs are tied to revised import regulations under the Trump administration that are raising the cost of importing goods manufactured abroad.

To cushion the impact, Apple has already been shifting its manufacturing strategy. Cook noted that a significant portion of iPhones sold in the US are now assembled in India, a strategy that continues unchanged. The value of Apple’s products manufactured in India has surged by 60% over the past year, reaching $22 billion.

"Most iPhones sold in the US now come from India," Cook confirmed, highlighting the success of the company’s geographic diversification efforts.

In China, a market where Apple has faced recent headwinds, the company saw a modest recovery. Revenue in the region climbed from $14.7 billion to $15.3 billion, offering some relief following sluggish performance in previous quarters.

Despite the earnings beat, Apple’s stock reaction was subdued. Shares rose just 2%, falling short of the significant gains seen by rivals like Microsoft and Meta—both of which continue to gain investor confidence with bold AI initiatives. Apple’s stock remains down about 15% for the year, as stakeholders look for a clearer roadmap in artificial intelligence.

During the call, analysts pressed Cook on Apple’s vision for AI and how emerging technologies might change the role of the iPhone in the future. Addressing this, Cook remarked, “I see the iPhone continuing to play a key role,” and added that rather than replacing the iPhone, future innovations will likely enhance its capabilities.

Some market analysts speculate that part of the recent sales spike could stem from customers rushing to purchase iPhones ahead of anticipated price hikes due to tariff changes. If true, it may signal a slowdown in demand in the coming quarter.

Still, with a solid quarter behind it and strategic moves in place, Apple is positioning itself to navigate the next wave of economic and technological shifts—even if the immediate road ahead is a bit more uncertain.