Apple is set to release its second-quarter earnings report on Thursday, as Wall Street looks for signs of how President Trump’s tariffs are affecting the iPhone maker. The company has been working to mitigate the impact of the tariffs by shipping 600 tons of iPhones from India to the US and leaning more heavily on its Indian operations.
Despite these efforts, Apple’s stock is down 16% year-to-date, driven largely by concerns over the potential for future tariffs on devices like smartphones and computers. The company has exempted these items from the initial 145% tariff, but the Trump administration is currently working on a plan to impose duties on semiconductors.
Analysts expect Apple’s earnings per share to increase due to stronger-than-expected sales of Macs, iPads, wearables, and services. However, some analysts have expressed concerns that the company’s growth prospects may be overestimated. KeyBanc analyst Brandon Nispel stated, “We don’t think Apple is ‘out-of-the-woods’ yet.” The company’s forward guidance for the coming quarters will also be closely watched by investors.
As a result of Trump’s tariffs, China-produced goods saw an initial impact on Apple’s sales. However, with the exemption of devices like smartphones and computers, the effects may have been mitigated. Analysts expect China revenue to improve in Q2, driven by increased sales of Macs, iPads, wearables, and services.
The company is also facing challenges related to AI development, including delays in launching a generative AI-powered version of its Siri personal assistant.
Source: https://finance.yahoo.com/news/apple-to-report-second-quarter-earnings-as-tariff-uncertainty-clouds-big-tech-outlook-174033482.html