Apple shares fell greater than 4 % in early buying and selling Friday as traders weighed an outlook for the iPhone maker that’s clouded by tariffs. The corporate’s fiscal second-quarter outcomes got here in forward of analyst estimates, with gross sales rising 5 % to $95.4 billion, and diluted earnings per share leaping 8 % to $1.65.
However the focus for traders facilities round how tariffs will influence Apple, with the corporate being one of many hardest hit of the massive tech shares for the reason that commerce warfare started. Shares have fallen greater than 18 % thus far in 2025, the second-worst efficiency among the many so-called Magnificent 7 shares.
Right here’s what else traders ought to find out about Apple’s quarterly outcomes and the way it’s managing the brand new tariff panorama.
Apple shifts provide chain to restrict influence of tariffs
Apple, which depends closely on China for manufacturing its numerous gadgets, stated that almost all of merchandise shipped into the U.S. throughout its June quarter would come from India and Vietnam, in an try and restrict the influence of tariffs. China will proceed to be the nation of origin for the “overwhelming majority” of merchandise offered outdoors the U.S., CEO Tim Cook dinner stated on a name with traders.
“Assuming the present international tariff charges, insurance policies and purposes don’t change for the stability of the [June] quarter and no new tariffs are added, we estimate the influence so as to add $900 million to our prices,” Cook dinner stated. “It’s very tough to foretell past June.”
The vast majority of iPhones shipped to the U.S. will come from India throughout the present quarter, whereas almost all different merchandise, corresponding to iPads, Macs, Apple Watches and AirPods, will come from Vietnam.
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“As primarily a {hardware} firm, we see materials threat for Apple from tariffs, each on profitability and longer-term demand,” William Kerwin, an analyst at Morningstar, wrote in a be aware to purchasers. “We lowered our short-term revenue forecast to replicate direct tariff prices, however keep our base-case expectation for Apple to earn an exemption from US tariffs in the long run.”
Analysts at Jefferies and Rosenblatt Securities each downgraded Apple’s inventory following the corporate’s outcomes.
Cook dinner touts U.S. investments, boosts returns to shareholders
Maybe in an effort to appease the Trump administration, Cook dinner kicked off Apple’s earnings name by touting its U.S. presence and highlighting its lately introduced plan to spend greater than $500 billion within the U.S. over the subsequent 4 years.
“We’re going to be increasing our groups in our services in a number of states, together with Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington, and we’re going to be opening a brand new manufacturing unit for superior server manufacturing in Texas,” Cook dinner stated.
“We additionally supply glass utilized in iPhone from an American firm. All informed, we have now greater than 9,000 suppliers within the U.S. throughout all 50 states,” Cook dinner added.
Apple additionally introduced a 4 % improve in its quarterly dividend to $0.26 per share and its board of administrators licensed a further $100 billion for share repurchases. The corporate has purchased again almost $50 billion in inventory over the previous six months.
Editorial Disclaimer: All traders are suggested to conduct their very own impartial analysis into funding methods earlier than investing resolution. As well as, traders are suggested that previous funding product efficiency is not any assure of future value appreciation.
