Apple shares fell greater than 4 p.c 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 p.c to $95.4 billion, and diluted earnings per share leaping 8 p.c 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 because the commerce struggle started. Shares have fallen greater than 18 p.c 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 units, 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 bought exterior the U.S., CEO Tim Prepare dinner stated on a name with traders.
“Assuming the present world tariff charges, insurance policies and functions 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,” Prepare dinner stated. “It’s very tough to foretell past June.”
Nearly all of iPhones shipped to the U.S. will come from India throughout the present quarter, whereas practically all different merchandise, comparable to iPads, Macs, Apple Watches and AirPods, will come from Vietnam.
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“As primarily a {hardware} firm, we see materials danger for Apple from tariffs, each on profitability and longer-term demand,” William Kerwin, an analyst at Morningstar, wrote in a observe 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.
Prepare dinner touts U.S. investments, boosts returns to shareholders
Maybe in an effort to appease the Trump administration, Prepare dinner kicked off Apple’s earnings name by touting its U.S. presence and highlighting its not too long ago introduced plan to spend greater than $500 billion within the U.S. over the following 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 facility for superior server manufacturing in Texas,” Prepare dinner stated.
“We additionally supply glass utilized in iPhone from an American firm. All informed, we’ve got greater than 9,000 suppliers within the U.S. throughout all 50 states,” Prepare dinner added.
Apple additionally introduced a 4 p.c 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 practically $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 determination. As well as, traders are suggested that previous funding product efficiency isn’t any assure of future value appreciation.
