Apple beats Q3 estimates as iPhone sales surge, guides for solid growth despite tariff hit

South Africa

The All Share index shed 0.79% on Friday to close out the week at 97,744.2 points, while the Top 40 index lost 0.71% to settle at 90,140.6 points. South African manufacturing sentiment turned positive for the first time in nine months, with July’s seasonally adjusted Absa PMI rising to 50.8, indicating expansion. New vehicle sales jumped 15.6% y/y, signalling strength in domestic demand. However, investor focus shifted to policy tensions after the SARB unilaterally lowered its inflation target, drawing resistance from Finance Minister Godongwana. Markets are watching for clarity amid concern over institutional cohesion. Meanwhile, Pretoria announced support measures for exporters impacted by new U.S. tariffs—most notably on autos and agriculture—potentially exacerbating unemployment. The new "Export Support Desk" aims to provide firms with market alternatives during this challenging period.

Europe

European equities faced sharp selling pressure, with the STOXX 600 falling 1.9% on Friday—its steepest daily decline in over three months—amid broad risk-off sentiment triggered by escalating U.S. trade levies. Tariffs on dozens of countries, including a 39% duty on Swiss exports, added to investor anxiety ahead of a Friday deadline. Volatility spiked, with the Euro STOXX VIX surging over 4 points. Novo Nordisk’s record share drop and holiday-closed Swiss markets compounded losses. UK-listed Watches of Switzerland declined 6.8%, while U.S.-listed Swiss ETFs hit three-month lows. With European stocks now over 5% below March highs, trade disruption remains the dominant headwind.

United States

U.S. markets closed sharply lower, with the S&P 500 suffering its largest daily percentage drop since May, as fresh tariffs and a weak jobs print unnerved investors. President Trump’s latest executive order imposed sweeping import duties just ahead of a deadline, fuelling fears of retaliatory trade actions. Labour data missed expectations, with July jobs slowing and previous months revised lower—raising concerns about the labour market’s resilience. Amazon fell over 8% after disappointing cloud revenues, and Apple shed 2.5% despite upbeat forecasts, citing $1.1bn in tariff-related costs. Fed Governor Adriana Kugler’s early resignation also adds uncertainty to the central bank’s near-term trajectory.

Asia

Asian equities followed Wall Street lower amid mounting global economic concerns. U.S. recession fears and softer jobs data led traders to fully price in a Fed rate cut for September, pressuring the dollar. In Japan, the BoJ signalled potential rate hikes by highlighting inflation risks—though Governor Ueda’s comments were interpreted dovishly, suggesting policy normalisation remains cautious. In China, EV giant BYD reported a 0.9% y/y dip in July production, ending a 16-month growth streak, while sales growth slowed sharply. These developments underscore fragility in Asian manufacturing and consumer sectors as the region faces growing exposure to global demand uncertainty and tariff fallout.

Currencies

The rand strengthened modestly against a weakening U.S. dollar, buoyed by disappointing U.S. employment data which increased the likelihood of Fed easing. However, local equities underperformed as investors weighed the implications of new American tariffs on South African goods. Broader currency markets saw the dollar partially recover on Monday, though sentiment remained fragile after the shock dismissal of a senior U.S. labour official. In Asia, the Indian rupee is expected to remain under pressure ahead of the RBI’s policy meeting and amid trade tensions with the U.S. Revised U.S. payroll data added to signs of a cooling labour market, fuelling FX volatility.

Commodities

Gold prices eased on Monday as investors took profits following Friday’s rally driven by soft U.S. jobs data and rising Fed rate cut expectations. The metal remains supported in a low-rate, high-uncertainty environment. Meanwhile, oil declined further after OPEC+ agreed to raise production by 547,000 bpd in September, signalling confidence in global demand recovery. The hike includes a UAE-specific increase and effectively reverses earlier output cuts—totalling around 2.5 million bpd. However, economic headwinds in the U.S. and potential demand weakness could cap price gains. Market participants remain focused on the supply-demand balance amid shifting geopolitical and macroeconomic dynamics.

AngloGold Ashanti Plc (ANG) +6.39%

AngloGold Ashanti delivered a robust Q2 2025, with gold production up 21% y/y to 804koz and free cash flow surging 149% to $535m. Adjusted EBITDA more than doubled to $1.44bn, while adjusted net debt fell 92% to $92m. Headline earnings rose 151% to $639m, supported by higher production from Geita, Obuasi and Sukari, and a 41% y/y increase in the average gold price to $3,287/oz. A dividend of 80cps was declared, reflecting strong cash generation. The company was added to key Russell US Indexes and reaffirmed full-year guidance, underpinned by capital discipline, improving margins and continued operational momentum across managed assets.

Apple Inc. (AAPL) -2.50%

Apple posted a strong fiscal Q3, with revenue rising nearly 10% y/y to $94.04 billion, beating consensus. EPS reached $1.57, above the $1.43 forecast. iPhone sales surged 13.5% to $44.58 billion, as customers advanced purchases ahead of tariff impacts. Despite a projected $1.1 billion cost from new U.S. tariffs in Q4, Apple guided for revenue growth in the mid-to-high single digits, outpacing the 3.27% analyst forecast. Services and Mac sales also beat expectations, while wearables and iPads lagged. Gross margins hit 46.5%, exceeding guidance. Apple is shifting supply chains to India and Vietnam, and regulatory pressures continue to mount in Europe.

Amazon.com Inc. (AMZN) -8.27%

Amazon shares fell 7% after AWS’s 17.5% Q2 revenue growth fell short of the pace set by Microsoft Azure (39%) and Google Cloud (32%), despite $31.4 billion in capex. AWS’s margin contraction to 32.9%—its lowest since Q4 2023—raised concerns, as the unit remains Amazon’s key profit driver, contributing ~60% of operating income. The company’s total operating income forecast for Q3 also missed expectations, amplifying investor anxiety. CEO Andy Jassy remained upbeat, noting the AI cloud race is in its infancy and that capacity constraints may ease. Nevertheless, AWS’s relative underperformance has triggered questions around return on investment and competitive positioning.

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