- Apple’s Q2 earnings, expected to show $94.2 billion in revenue and $1.62 EPS, up from $90.7 billion and $1.53 last year, will reflect growth despite a projected iPhone revenue decline to $45.6 billion from $45.9 billion, offset by gains in iPad, Mac, wearables, and services.
- Greater China revenue is forecasted to rise to $16.8 billion from $16.3 billion, potentially driven by consumers buying iPhones preemptively to avoid tariff-related price increases, with stronger pull-forward effects expected in Q3.
- Apple (AAPL) is unlikely to directly address tariff impacts but may highlight strategies like shifting some production to India, though its heavy reliance on China, where 80% of iPhone assembly occurs, limits rapid supply chain changes.
Apple Inc. (AAPL) is poised to unveil its second-quarter earnings on Thursday, with analysts and investors keenly focused on how the company navigates tariff uncertainties and sustains growth amid shifting iPhone demand. Yahoo Finance Technology Editor Dan Howley highlighted that Apple’s expected revenue of $94.2 billion, up from $90.7 billion last year, reflects resilience despite a projected dip in iPhone revenue to $45.6 billion, slightly below the $45.9 billion recorded in Q2 2024. This shortfall is anticipated to be offset by stronger performance in iPad, Mac, wearables, and services, including products like the HomePod, which are expected to bolster overall revenue. Earnings per share are forecasted at $1.62, an improvement over last year’s $1.53, signaling Apple’s ability to maintain profitability even as its flagship product faces headwinds.
The spotlight is also on Apple’s performance in Greater China, a critical market where revenue is projected to rise to $16.8 billion from $16.3 billion in the prior year. This uptick suggests robust demand, potentially driven by consumers purchasing iPhones preemptively to avoid tariff-related price hikes, though Howley noted that such “pull-forward” buying may become more evident in Q3. Apple’s strategic response to tariffs, particularly President Trump’s proposed levies, will be a key discussion point. While the company is unlikely to offer explicit commentary on tariffs’ impact, given CEO Tim Cook’s diplomatic rapport with Trump, Howley anticipates Apple will outline measures to mitigate risks, such as shifting some production to India for U.S. consumers. However, China remains a cornerstone of Apple’s supply chain, with 80% of global iPhone assembly occurring there, limiting the feasibility of a rapid relocation.
Investors are also eager for insights into whether Apple Intelligence, the company’s AI-driven software enhancements, is fueling meaningful growth, though Howley suggested the earnings call may not provide definitive clarity on this front. Apple’s guidance for Q3 will likely reflect cautious optimism, balancing tariff-related uncertainties with the company’s diversified portfolio. The broader context of Apple’s earnings comes amid a volatile global trade environment, where tariffs could inflate costs for U.S. consumers, potentially dampening iPhone demand. Yet, Apple’s $3 trillion market capitalization and ecosystem-driven loyalty provide a buffer, enabling it to absorb shocks better than competitors. As the company navigates these challenges, its ability to leverage non-iPhone segments and expand manufacturing flexibility will be critical to sustaining its financial momentum.
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