Apple reported stronger-than-expected earnings, thanks to solid iPhone sales, but shares dropped 4% on Friday as investors worried about the long-term impact of Trump-era tariffs.
🔹 Key Numbers:
- Q2 Revenue: $95.4 billion
- Tariff Impact: $900 million hit expected in Q3
- Services Revenue: $26.6 billion
- Shares fell 4% after earnings call
🔹 What’s the Problem?
- Despite exemptions on phones and computers, Trump’s 145% tariffs on Chinese imports are forcing Apple to shift iPhone production to India
- Apple CEO Tim Cook said it’s too early to provide future guidance and declined to predict the long-term impact
🔹 Why Apple Is More Exposed:
- Unlike other tech giants, Apple depends heavily on overseas manufacturing
- It’s trying to move production to India and Vietnam, but those countries face tariff uncertainty too
🔹 Analyst Reactions:
“This is the best-case scenario… and it’s still risky,” said Jefferies’ Edison Lee
UBS warns iPhone revenue may decline year-over-year in June
🔹 What’s Next?
- Tariffs on India and Vietnam are paused — for now
- The Trump administration’s Section 232 review on semiconductor tariffs could deal another blow to Apple if duties are imposed
Until trade policy becomes clearer, Apple’s future remains uncertain.