Apple overcomes Trump's trade war, slow start in AI to deliver surprisingly strong quarter
The April-June results released Thursday came against a backdrop of adversity that has been raising worries about the trajectory of a longtime tech kingpin.
Despite the doubts, Apple remains a moneymaking machine.
The Cupertino, California, company earned $23.4 billion, or $1.57 per share, during its fiscal third quarter, a 9% increase from the same time last year. Revenue climbed 10% from a year ago to $94 billion. The company's iPhone sales surged 13% from a year ago to $44.6 billion. All those numbers were well above the analyst projections that steer investors, helping to boost Apple's recently slumping stock price by 2% in extended trading.
But the unexpectedly solid performance doesn't necessarily mean it's smooth sailing ahead for Apple.
President Donald Trump's trade war targeting foreign-made products such as the iPhone and Apple's stumbling start in the pivotal transition to AI is causing investors to question if the company will remain at the tech forefront as the industry moves into a new era.
Before Thursday's report came out, Apple's stock price had plunged by 17% so far this year to wipe out more than $600 billion in shareholder wealth and knock the company off its perch as the world's most valuable company. Meanwhile, the shares of AI chipmaker Nvidia have surged 32% this year and the shares of AI pacesetter Microsoft have gained 27%, propelling the market value to $4 trillion.
Even though Apple remains highly profitable, the tariffs that Trump has already imposed on China and other countries cost the company $900 million during the past quarter, with even more financial pain looming as his administration threatens to ramp up the fees.
Apple softened the blow of Trump's tariffs on products made outside the U.S. during the past quarter by shifting its production of iPhones from China to India. But the administration intends to impose a 25% tariff on goods from India, a move that could intensify the pressure on Apple to raise the prices on the next generation of iPhones expected to be released in September.
Meanwhile, Apple is still trying to fulfill the AI promises it made last year when it unveiled an array of new iPhone features built on the revolutionary technology, raising expectations that the shift would spur millions of people to upgrade their old devices. But Apple still hasn't delivered on an AI upgrade that was supposed to smarten up its often-bumbling virtual assistant Siri, one of the main reasons underlying the lackluster growth of iPhone sales.
'There are two big questions looming over Apple: How are you going to rejigger your business model to deal with the new tariff backdrop and then what is the company going to do to drive an upgrade cycle for the iPhone?' said Melissa Otto, a stock market analyst for S&P's Visible Alpha.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Geeky Gadgets
6 minutes ago
- Geeky Gadgets
6 Surprising Ways ChatGPT 5 Can Simplify Your Daily Life
What if you could tap into the power of innovative artificial intelligence to simplify your daily tasks, spark creativity, or even master new skills—all without needing a tech background? With GPT-5, that's no longer a distant dream but a tangible reality. This latest evolution in AI doesn't just process text; it understands context, integrates multiple forms of input like images, and offers enhanced reasoning capabilities. Whether you're a curious beginner or someone looking to explore AI for the first time, GPT-5 is designed to meet you where you are, offering tools that feel intuitive yet fantastic. Imagine automating your schedule, brainstorming ideas for your next big project, or even breaking down complex medical information—all with a few simple prompts. The possibilities are as exciting as they are accessible. In this guide, AI Grid explains more about six beginner-friendly ways to unlock the potential of GPT-5, from boosting productivity to enhancing creativity. You'll discover how this advanced AI can help you build personalized dashboards, streamline workflows, and even learn new languages with interactive voice features. Along the way, we'll highlight how GPT-5's multimodal capabilities and tailored solutions make it a fantastic option for everyday challenges. Whether you're looking to save time, spark innovation, or tackle complex problems with ease, these use cases will inspire you to see AI not as a distant, technical tool but as a practical companion for your personal and professional life. Let's explore how GPT-5 can reshape the way you approach your goals and aspirations. ChatGPT 5 Key Features 1. Build Personalized Dashboards and Applications GPT-5 enables users to create customized tools and dashboards that simplify data management and optimize workflows. Its ability to retain memory and process complex inputs allows for seamless automation and visualization of data. For example: Design interactive dashboards to track business metrics, such as sales performance, customer engagement, or operational efficiency. Develop lightweight web applications to automate repetitive tasks, such as data entry or report generation. By integrating GPT-5 into your processes, you can focus on strategic decision-making while automating time-intensive tasks, ultimately improving productivity and reducing errors. 2. Enhance Creative and Collaborative Writing As a co-writing assistant, GPT-5 is an invaluable partner for creative and professional writing projects. Whether you're crafting a novel, screenplay, or research paper, it can assist in multiple ways: Generate fresh ideas and refine concepts to overcome creative blocks. Ensure consistency in tone, style, and structure across your work. Produce dialogue, plot developments, or even visual elements to enrich your narrative. With its multimodal capabilities, GPT-5 allows you to seamlessly integrate text and visual tools, making the creative process more dynamic and efficient. This makes it an ideal companion for writers, researchers, and content creators seeking to elevate their work. 6 ChatGPT 5 Use Cases For Beginners (Ways To Use GPT-5) Watch this video on YouTube. Lear more about AI advanced reasoning with the help of our in-depth articles and helpful guides. 3. Accelerate Scientific Research and Experimentation GPT-5 offers researchers a powerful tool to analyze complex datasets and derive actionable insights. Its advanced reasoning capabilities can assist in: Proposing experimental methodologies and refining hypotheses. Identifying patterns in data, such as genetic markers or chemical structures in pharmaceutical research. Providing domain-specific expertise to guide critical decisions. For instance, in the field of drug development, GPT-5 can analyze chemical compositions to identify potential candidates, reducing the need for extensive trial-and-error experimentation. This accelerates innovation and enhances the efficiency of research processes. 4. Master Language Learning with Voice Interaction GPT-5's advanced language learning features make it a highly effective tool for mastering new languages. Its capabilities include: Interactive voice-based conversations to practice speaking and listening skills. Customizable difficulty levels to match your proficiency and learning pace. Comprehensive study modes that cover grammar, vocabulary, and cultural nuances. This personalized approach ensures an engaging and effective learning experience, helping you build confidence in real-world communication. Whether you're preparing for travel, work, or personal growth, GPT-5 adapts to your unique learning needs. 5. Simplify Health Information and Decision Support Navigating complex medical information can be daunting, but GPT-5 simplifies the process by presenting clear, concise, and actionable insights. It can: Summarize diagnostic results and treatment options in understandable terms. Provide context-aware recommendations to support critical health decisions. Help evaluate the benefits and risks of various therapies or procedures. For example, if you're exploring treatment options for a medical condition, GPT-5 can break down the information into manageable pieces, empowering you to make informed choices with confidence. This makes it a valuable resource for patients and caregivers alike. 6. Boost Productivity and Streamline Scheduling Managing time and tasks becomes effortless with GPT-5's productivity-enhancing features. By integrating with tools like Gmail, Google Calendar, and other organizational platforms, it can: Automate reminders and organize your daily schedule efficiently. Identify gaps in your calendar to suggest optimal times for meetings or activities. Draft email responses and categorize messages to improve communication workflows. These capabilities allow you to stay organized and focused, making sure that you can prioritize high-value tasks while minimizing distractions. GPT-5's ability to adapt to your preferences makes it an indispensable tool for personal and professional productivity. Unlocking the Full Potential of GPT-5 GPT-5's versatility and advanced capabilities make it a powerful tool for users of all experience levels. From automating workflows to simplifying complex information, it offers practical solutions that enhance productivity, creativity, and decision-making. By exploring these six use cases, you can use GPT-5 to transform how you approach everyday tasks and challenges, unlocking new possibilities for growth and innovation. Media Credit: AIGRID Filed Under: AI, Guides Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
Reuters
7 minutes ago
- Reuters
The crude oil market bets Trump's India threats are hollow: Russell
LAUNCESTON, Australia, Aug 11 (Reuters) - The crude oil market's rather sanguine reaction to the U.S. threats to India over its continued purchases of Russian oil is effectively a bet that very little will actually happen. President Donald Trump cited India's imports of Russian crude when imposing an additional 25% tariff on imports from India on August 6, which is due to take effect on August 28. If the new tariff rate does come into place, it will take the rate for some Indian goods to as much as 50%, a level high enough to effectively end U.S. imports from India, which totalled nearly $87 billion in 2024. As with everything related to Trump, it pays to be cautious given his track record of backflips and pivots. It's also not exactly clear what Trump is ultimately seeking, although it does seem that in the short term he wants to increase his leverage with Russian President Vladimir Putin ahead of their planned meeting in Alaska this week, and he's using India to achieve this. Whether Trump follows through on his additional tariffs on India remains uncertain, although the chances of a peace deal in Ukraine seem remote, which means the best path for India to avoid the tariffs would be to acquiesce and stop buying Russian oil. But this is an outcome that simply isn't being reflected in current crude oil prices. Global benchmark Brent futures have weakened since Trump's announcement of higher tariffs on India, dropping as low as $65.81 a barrel in early Asian trade on Monday, the lowest level in two months. This is a price that entirely discounts any threat to global supplies, and assumes that India will either continue buying Russian crude at current volumes, or be able to easily source suitable replacements without tightening the global market. Are these reasonable assumptions? The track record of the crude oil market is somewhat remarkable in that it quickly adapts to new geopolitical realities and any price spikes tend to be shortlived. The Russian invasion of Ukraine in February 2022 sent crude prices hurtling toward $150 a barrel as European and other Western countries pulled back from buying Russian crude. But within four months the price was back below where it was before Moscow's attack on its neighbour as the market simply re-routed the now discounted Russian oil to China and India. In other words, the flow of oil around the globe was shifted, but the volumes available for importers remained much the same. But what Trump is proposing now is somewhat different. It appears he wants to cut Russian barrels out of the market in order to put financial pressure on Moscow to cut a deal over Ukraine. There are effectively only two major buyers for Russian crude, India and China. China, the world's biggest crude importer, has more leverage with Trump given U.S. and Western reliance on its refined critical and other minerals, and therefore is less able to be coerced into ending its imports of Russian oil. India is in a less strong position, especially private refiners like Reliance Industries ( opens new tab, which will want to keep business relationships and access to Western economies. India imported about 1.8 million barrels per day of Russian crude in the first half of the year, or about 37% of its total, according to data compiled by commodity analysts Kpler. About 90% of its Russian imports came from Russia's European ports and was mainly Urals grade. This is a medium sour crude and it would raise challenges for Indian refiners if they sought to replace all their Urals imports with similar grades from other suppliers. There are some Middle Eastern grades of similar quality, such as Saudi Arabia's Arab Light and Iraq's Basrah Light, but it would likely boost prices if India were to seek more of these crudes. If Chinese refiners were able to take the bulk of Russian crude given up by India, it may allow for a re-shuffling of flows, but that would not appear to be what Trump wants. Trump and his advisers may believe there is enough spare crude production capacity in the United States and elsewhere to handle the loss of up to 2 million bpd of Russian supplies. But testing that theory may well lead to higher prices, especially for certain types of medium crudes which would be in short supply. It's simplistic to say that higher U.S. output can supply India's refiners, as this would mean those refiners would have to be willing to accept a different mix of refined products, including producing less diesel, as U.S. light crudes tend to make more products such as gasoline. For now the crude oil market is assuming that the Trump/India/Russia situation will end as another TACO, the acronym for Trump Always Chickens Out. But the reality is likely to be slightly more messy, as some Indian refiners pull back from importing from Russia, some Chinese refiners may buy more and once again the oil market goes on a geopolitical merry-go-round. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
Reuters
7 minutes ago
- Reuters
Oil edges up ahead of US-Russia talks
LONDON, Aug 11 (Reuters) - Oil prices edged higher on Monday, after falling more than 4% last week, as investors looked ahead to talks between the U.S. and Russia later this week on the war in Ukraine. Brent crude futures were up 36 cents, or 0.54%, to $66.95 a barrel at 1202 GMT, while U.S. West Texas Intermediate crude futures were up 34 cents, or 0.53%, to $64.22. U.S. President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. The talks follow increased U.S. pressure on Russia, raising the prospect that penalties on Moscow could be tightened if a peace deal is not reached. Trump set a deadline of last Friday for Russia, which invaded Ukraine in February 2022, to agree to peace or have its oil buyers face secondary sanctions. At the same time, Washington is pressing India to reduce purchases of Russian oil. Oil prices fell in recent days as market participants reduced supply disruption estimates, likely because the U.S. only imposed an extra tariff on India rather than all buyers of Russian oil, said UBS analyst Giovanni Staunovo. UBS has lowered its year-end Brent crude forecast to $62 a barrel from $68, citing higher supply from South America and resilient output from sanctioned countries. The bank added that Indian demand had fallen short of its expectations of late, and that it expected OPEC+ to pause its production hikes unless larger unexpected supply disruptions emerge. An Exxon Mobil-led consortium began crude production four months earlier than expected at a fourth floating production, storage and offloading vessel in Guyana, Exxon said on Friday. Trump's higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to weigh on economic activity as they force changes to supply chains and fuel higher inflation. Separately, data from the National Bureau of Statistics on Saturday showed China's producer prices fell more than expected in July.
