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Apple Inc. reported third-quarter revenue that handily topped analysts’ estimates, boosted by surprisingly strong sales of the iPhone and products in China.
Revenue rose 9.6% to $94 billion in the period, which ended June 28, the company said in a statement Thursday. Analysts estimated $89.3 billion on average, according to data compiled by Bloomberg. Apple had projected a $900 million headwind from tariffs during the period, saying that revenue would grow in the low- to mid-single digits.

Though US tariffs are still expected to weigh on results in the long run, they likely provided a boon to Apple in the latest period — with consumers rushing to stores to get out ahead of expected price increases. The company also has been staging a comeback in China, a market where local phone brands have made inroads with consumers. Services were another bright spot for Apple last quarter, topping Wall Street projections.

Meanwhile Amazon.com Inc. projected operating income in the current quarter that fell short of analysts’ estimates, worrying investors that the tech giant is spending too much to keep up with competitors in the race for artificial intelligence.

Operating profit will be $15.5 billion to $20.5 billion in the period ending in September, compared with an average estimate of $19.4 billion. Sales will be $174 billion to $179.5 billion, the company said Thursday in a statement. Analysts, on average, expected $173.2 billion.
Chief Executive Officer Andy Jassy is engaged in an AI infrastructure arms race with Microsoft Corp. and Alphabet Inc. that requires heavy spending on data centers. Both of those rivals reported strong earnings earlier this week showing they are benefiting from the AI boom.

Today's show features:

• Bloomberg Intelligence Senior Technology Analyst Anurag Rana and Senior Analyst for E-commerce & Athleisure Poonam Goyal on Amazon’s earnings
• Ivan Feinseth, Chief Investment Officer and Research Director at Tigress Financial Partners, with reaction and analysis of Apple and Amazon earnings
• Jayati Bharadwaj, Director of FX Strategy for TD Securities, on the recent US dollar rally
• Bloomberg News US Legal Reporter Erik Larson on US Justice Department lawyers defending President Donald Trump's authority to impose global tariffs at a hearing in Washington

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