Apple’s much-awaited quarterly earnings report failed to assuage investor issues about its greatest challenges, together with escalating tariff prices and a slowdown in .

The corporate’s shares declined about 2.8 p.c in premarket buying and selling Friday. Apple had launched second-quarter outcomes that included worse-than-expected gross sales in . The iPhone maker additionally warned within the Thursday assertion that tariffs will enhance prices this quarter, an indication that geopolitical tensions are taking a rising toll on the world’s most precious enterprise. 

Apple expects $900 million (roughly Rs. 7,603 crore) in higher costs from tariffs within the present interval, Chief Government Officer Tim Cook mentioned throughout a convention name. Income will increase by a share within the low- to mid-single digits within the quarter, in contrast with a 5 p.c common analyst estimate. The corporate did not provide any steerage on the affect of tariffs past the present interval.

“We are going to handle the corporate the best way we all the time have, with considerate and deliberate selections, with a concentrate on investing for the long run,” Prepare dinner mentioned throughout the name.

Gross sales from , in the meantime, fell 2.3 p.c to $16 billion (roughly Rs. 1,35,165 crore) within the second quarter, which ended March 29. Analysts had predicted $16.83 billion (roughly Rs. 1,42,164 crore). That shortfall is an ominous signal for what was as soon as a progress market. 

Apple has misplaced floor to native telephone manufacturers, comparable to Huawei, Xiaomi and Oppo, and the federal government there banned foreign-made expertise from some workplaces. Apple’s -centric manufacturing additionally makes it particularly susceptible to tariffs introduced by the Trump administration.

The corporate is struggling in AI as effectively, particularly in , the place its Apple Intelligence platform is not but obtainable. And the model is more and more seen as behind the occasions by shoppers in , the place rivals have rolled out foldable gadgets.

Apple is getting ready to launch its AI companies in within the coming months — counting on companions Alibaba Group Holding Ltd. and Baidu Inc. — and a foldable iPhone is due subsequent yr.

As a part of the quarterly report, the corporate introduced plans to extend its share buyback program by $100 billion (roughly Rs. 8,44,670 crore) and increase the quarterly dividend 4 p.c to 26 cents a share. Apple shares had been down 15 p.c this yr by means of Thursday’s shut.

General gross sales gained 5 p.c to $95.4 billion (roughly Rs. 8,05,821 crore) final quarter, above the $94.6 billion (roughly Rs. 140) common estimate. Apple had projected share progress within the low- to mid-single digits. Earnings got here in at $1.65 a share within the second quarter, in contrast with a median estimate of $1.62 (roughly Rs. 135).

Apple offered $46.8 billion (roughly Rs. 3,95,379 crore) value of iPhones within the interval, exceeding estimates of $45.9 billion (roughly Rs. 3,87,804 crore). Nonetheless, that is up lower than two p.c from $46 billion (roughly Rs. 3,88,355 crore) within the year-earlier quarter and compares with $51.3 billion (roughly Rs. 4,33,391 crore) in the identical interval two years in the past.

The most recent flagship iPhones aren’t markedly completely different than the prior fashions and largely provide the identical AI options because the iPhone 15 Professional from 2023. That is given shoppers much less cause to improve.

The corporate debuted the iPhone 16e throughout the quarter, changing its low-end $429 (roughly Rs. 36,240) SE mannequin. That telephone’s $599 (roughly Rs. 50,604) worth is greater than rivals’ choices — one thing that will have deterred some consumers. Later this yr, the corporate is planning extra vital iPhone upgrades, together with a skinnier design. Prepare dinner praised the corporate’s homegrown C1 modem chip, which is a part of the 16e, saying the brand new element is the start of a “journey.”

The corporate has been contending with a spread of challenges — past the looming tariffs. Apple shuffled AI management in latest weeks, and it is beneath mounting regulatory stress within the EU and its dwelling nation. On Wednesday, a federal choose demanded that the corporate open up its App Retailer to third-party cost choices and cease charging commissions on exterior purchases.

Providers, which incorporates the App Retailer and Apple TV+, grew 12 p.c to $26.7 billion (roughly Rs. 2,25,568 crore) final quarter — in keeping with estimates. That enterprise is beneath risk in a couple of areas, although. This week’s App Retailer ruling is poised to harm the platform’s income. And the US authorities is making an attempt to interrupt up Apple’s profitable search take care of Alphabet Inc.’s Google. 

The corporate did not present steerage on future companies progress as a consequence of “uncertainty.”

The Mac division, which launched new MacBook Air and Mac Studio fashions throughout the quarter, generated $7.95 billion (roughly Rs. 67,151 crore) in income. That beat estimates of practically $7.8 billion.

The iPad accounted for gross sales of $6.4 billion (roughly Rs. 54,051 crore), topping projections of about $6.1 billion (roughly Rs. 51,518 crore). In March, the corporate rolled out a refreshed low-end iPad in addition to iPad Air fashions with sooner M3 processors. It is planning to introduce a brand new iPad Professional with an M5 chip as early as the top of this yr, Bloomberg Information has reported.

The corporate’s Wearables, House and Equipment class, which has struggled in latest quarters, generated $7.52 billion (roughly Rs. 63,510 crore) in gross sales. That missed a median estimate of $8.05 billion (roughly Rs. 67,980 crore).

Tariffs stay one of many greatest query marks. Although Apple is more likely to sidestep the 145 p.c levy that the administration initially proposed, new tariffs on electronics are nonetheless coming. The turmoil threatens to upend the corporate’s provide chain and probably power it to boost costs.

Prepare dinner mentioned throughout the name that he had nothing to announce about attainable worth will increase.

Already, Apple is seeking to make extra of its US-bound iPhones in India somewhat than . That nation is now fulfilling half of US demand, Prepare dinner mentioned. He mentioned that almost all of manufacturing for Apple Watches, AirPods, iPads and Macs offered within the US will likely be made in Vietnam, which has a decrease tariff stage than . 

Highlighting the tariff concern, Apple cited “commerce and different worldwide disputes” within the record of dangers and uncertainties in its quarterly report. That is one thing it sometimes mentions in its annual filings.

However the Cupertino, California-based firm obtained one increase from the tariff threats within the present quarter: Prospects flooded Apple retail stores to purchase new iPhones and different merchandise out of worry that worth hikes have been coming.

These gross sales would present up within the June quarter. Prepare dinner mentioned the tariffs did not create further demand within the March quarter, and he is uncertain of the exact affect within the present interval. 

The Apple CEO sidestepped questions on bringing further manufacturing to the US. However he touted that the corporate will use tens of hundreds of thousands of US-made system processors this yr.

Prepare dinner additionally defended the corporate’s AI technique. He was requested about delays to a brand new model of the Siri voice assistant and mentioned the corporate wanted extra time to work on the options so that they meet Apple’s “high-quality bar.” 

“We’re making progress,” he mentioned. “And we look ahead to getting these options into prospects’ palms.”

© 2025 Bloomberg LP

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