Apple saw an 'unusual buying pattern' among US shoppers this year. Tim Cook explains what happened.
CEO Tim Cook told investors on Thursday that an "unusual buying pattern" for iPhones and Macs in the US that started in April led to an "incredible" quarter of sales for Apple.
Consumers rushed to upgrade their devices ahead of potential price hikes they feared could come from tariffs.
Sales of the newest iPhone 16 lineup grew by double digits compared to the iPhone 15 model from the quarter a year ago, while Mac updates "set records," Cook said as the company reported earnings.
"People buying because of discussions about tariffs" drove one percentage point of Apple's 10% year-over-year growth during its third quarter, he said.
The tech giant reported $94 billion in revenue for the period, including a stronger-than-expected $45 billion in iPhone sales.
Wall Street was pleased by Apple's Q3 growth during a lackluster year in which the stock has slid 16% on concerns about tariff costs, manufacturing pressures, and the tech giant's positioning in the AI wars.
The threat of President Donald Trump's tariff war loomed large in April. Tariff rates on goods from China, where Apple manufactures many of its phones, spiked amid the escalating trade war and prompted concerns that the company could raise prices.
Some people went to their local Apple store for an upgrade to avoid potentially paying more later. The result was "tariff-related pull ahead and demand" for iPhone 16 models and Macs, CFO Kevan Parekh told investors Thursday.
One shopper, Joseph Donnelly, planned to hold onto his iPhone 13 until the iPhone 17 is released, but told Business Insider in April that talk of tariffs changed his mind. "It's not innovation or a broken phone that brought me to the store," he said.
Donnelly might've been onto something. Jefferies analysts said Wednesday that they expect some of the coming iPhone 17 models to cost $50 more to offset the impact of tariffs. However, the company didn't share any plans for price hikes on Thursday's earnings call.
As Apple faces pressure to move manufacturing to the US, the price of its golden goose will remain a topic of conversation.
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Yahoo
10 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures rise as Trump hints at chip tariff carveout
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Fast Company
12 minutes ago
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CNBC
13 minutes ago
- CNBC
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