Apple hit with €500M EU fine, tariffs dent margins; China sales surge 38% on iPhone strength

Filed January 30, 2026 · Period ending December 27, 2025 · Compared to 10-Q Jan 31, 2025 · ~2 min read

Key Changes

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  European Commission fined Apple €500 million and ordered removal of App Store steering restrictions; Apple appealed. Separately, Ninth Circuit partially upheld 2025 injunction in Epic case, allowing Apple to charge commissions on link-out purchases but requiring parity in presentation.

  Legal Proceedings verify on EDGAR →
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  New U.S. tariffs on imports from China, Taiwan, Vietnam, and other countries began Q2 2025; Apple disclosed tariffs partially offset Products gross margin gains and warned of uncertain supply chain, component availability, and pricing impacts ahead.

  MD&A: Tariffs and Other Measures verify on EDGAR →
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  Greater China sales jumped 38% year-over-year to $25.5B, reversing prior year's 11% decline, driven by higher iPhone sales. iPhone revenue grew 23% globally to $85.3B, led by Pro model demand.

  MD&A: Segment Performance verify on EDGAR →