Apple’s much -awaited quarterly earning report failed to calm investors’ concerns about its biggest challenges, including tariff costs and recession in China.
The company’s shares declined by about 2.8 percent in premarket trading on Friday. Apple released the results of the second quarter, which included worse sales in China. The iPhone manufacturer also warned in Thursday’s statement that tariffs would increase cost in this quarter, an indication that geo -political stress is taking growing tolls on the world’s most valuable business.
Apple expects $ 900 million at high cost (about Rs 7,603 crore) In the current period, the Chief Executive Officer Tim Cook said during a conference call. Income Will increase Five percent of the average analyzer compared with estimates from one percent in the low-middle—-half points in the quarter compared with estimates. The company did not give any guidance to the impact of tariff beyond the current period.
Cook said during the call, “We will manage the company in the way we have always thoughtful and deliberate decisions, with focus on investment for long periods,” Cook said during the call.
Sales from China, meanwhile, fell 2.3 percent to $ 16 billion (about Rs 1,35,165 crore) in the second quarter, which ended on 29 March. Analysts predicted $ 16.83 billion (about Rs 1,42,164 crore). This deficiency is an inauspicious sign for the development market once.
Apple has lost ground for local phone brands, such as Huawei, Xiaomi and Oppo, and the government there has banned foreign -made technology from some workplaces. Apple’s China-centric production also makes it particularly weak for tariffs declared by the Trump administration.
The company is also struggling in AI, especially in China, where its Apple Intelligence platform is not yet available. And the brand is being seen behind the time by consumers in China, where the contestants have rolled out the foldable device.
Apple is preparing to launch its AI services in China in the coming months – Partners Alibaba Group Holding Limited and Baidu Inc.
As part of the quarterly report, the company announced a plan to increase its share buyback program to $ 100 billion (about Rs 8,44,670 crore) and extended the quarterly dividend by four percent to 26 cents per share. This year, Apple’s shares were reduced by 15 percent from close to Thursday.
Overall sales increased to $ 95.4 billion (about Rs 8,05,821 crore) to more than $ 94.6 billion (about Rs 140) from the average estimate. Apple had estimated a percentage increase in mid—half points. With an average estimate of $ 1.62 (about Rs 135), the second quarter earned at $ 1.65 per share.
Apple sold the iPhones over an estimate of $ 45.9 billion (about Rs 3,87,804 crore) in a period of $ 46.8 billion (about Rs 3,95,379 crore). Nevertheless, it is less than two percent to $ 46 billion (about Rs 3,88,355 crore) in the year-air quarter and compare $ 51.3 billion (about Rs 4,33,391 crore) in the same period two years ago.
The latest flagship iPhones are not clearly different from the pre -model and mostly offer AI features similar to the iPhone 15 Pro since 2023. This has been given a less reason to upgrade consumers.
The company introduced the iPhone 16E during the quarter, replacing its low-end $ 429 (about 36,240 rupees) SE model. The price of $ 599 (about Rs 50,604) of that phone is more than the offerings of the contestants – something that can stop some shopkeepers. Later this year, the company is planning a more important iPhone upgrade, including a skinier design. Cook praised the company’s homegron C1 modem chip, which is part of 16E, saying that the new component is the beginning of a “journey”.
The company is struggling with a series of challenges – beyond the Lump Tariff. Apple AI management reshuffle In recent weeks, and it is under increasing regulatory pressure in the European Union and its country. On Wednesday, a federal judge demanded that the company opened its app store for third -party payment options and stopped charging the outside shopping.
Services, including app store and Apple TV+, increased by 12 percent to $ 26.7 billion (about Rs 2,25,568 crore) in the last quarter – in line with estimates. This business is in danger in some areas, though. The ruling platform of this week’s app store is ready to hurt the revenue. And the US government is trying to break Apple’s attractive search deal with Alfabet Inc.’s Google.
The company did not guide the development of future services due to “uncertainty”.
Mac Division, which Launched The New MacBook Air and Mac Studio Models, Revenue, produced $ 7.95 billion (about Rs 67,151 crore) during the quarter. It defeated estimates of about $ 7.8 billion.
The iPad was responsible for the sale of $ 6.4 billion (about Rs 54,051 crore), which topped the estimates of about $ 6.1 billion (about Rs 51,518 crore). In March, company roll Ipad air model with a fresh low-end iPad as well as fast M3 processor. It is planning to introduce a new iPad Pro with an M5 chip later this year, Bloomberg News Has reported,
The company’s wearbals, home and accessories category, which have struggled in recent quarters, produced $ 7.52 billion (about Rs 63,510 crore) in sales. It missed an average estimate of $ 8.05 billion (about Rs 67,980 crore).
Tariffs remain one of the biggest question marks. Although Apple is likely to ignore 145 percent of China Levi which was originally proposed by the administration, new tariffs on electronics are still coming. The upheaval -capital threatens to enhance the company’s supply chain and potentially force the prices.
Cook said during the call that he had nothing to announce about the possible price increase.
Already, Apple is looking at India to create its US-bound iPhone instead of China. Cook said that the country is now fulfilling American demand. He said that most of the production for Apple watches, airpods, iPads and MACS sold in the US will be made in Vietnam, which has a lower tariff level than China.
Exposing tariff anxiety, Apple in its quarterly report cited “trade and other international disputes” in the list of risks and uncertainties. This is something that usually mentions in its annual filing.
But Cupertino, California -based company received a boost from tariff hazards in the current quarter: Customer Apple retail store due to flood The price was increasing to buy new iPhones and other products out of fear.
Those sales will appear in the June quarter. Cook said that Tariff did not make additional demand in the March quarter, and is uncertain about the exact impact in the current period.
Apple’s CEO raised questions about bringing additional manufacturing in the US. But he said that the company will use millions of American devices processors this year.
Cook also defended the company’s AI strategy. He was asked about a new version of a new version of Siri Voice Assistant and said that the company needs more time to work on features so that they meet the “high quality bar” of Apple.
“We are progressing,” he said. “And we look forward to bringing these features into the hands of customers.”
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