{"id":844622,"date":"2025-04-30T09:11:48","date_gmt":"2025-04-30T14:11:48","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/30\/apple-earnings-are-coming-heres-what-to-watch\/"},"modified":"2025-04-30T09:11:48","modified_gmt":"2025-04-30T14:11:48","slug":"apple-earnings-are-coming-heres-what-to-watch","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/30\/apple-earnings-are-coming-heres-what-to-watch\/","title":{"rendered":"Apple earnings are coming. Here’s what to watch"},"content":{"rendered":"
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In This Story<\/h6>\n<\/section>\n

Wall Street is about to find out just how far the Apple (AAPL-1.55%<\/span><\/svg><\/span><\/span><\/span><\/a><\/span>) may fall from its trillion-dollar tree. As the Silicon Valley giant prepares to release its fiscal second-quarter earnings report on Thursday, the world\u2019s most valuable tech company finds itself at the intersection of profit \u2014 and politics.<\/p>\n

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Suggested Reading<\/h4>\n<\/div>\n
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How Trump\u2019s tariffs could make your iPhone cost $3,500<\/p>\n<\/div>\n

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Suggested Reading<\/h4>\n<\/div>\n

While Apple\u2019s fundamentals remain sound, a rising tide of tariffs, overseas competitors, and investor skepticism all threaten to affect what once seemed like a bulletproof company. And apprehension levels are rising.<\/p>\n

Still, analysts expect yet another quarter of reliable, if unspectacular, growth \u2014 earnings per share of $1.60, up about 5% from the same period a year ago, on revenue of $94.2 billion, a 3.8% year-over-year increase. Apple had projected low- to mid-single-digit revenue growth for this second quarter from the prior year.<\/p>\n

The company has outpaced Wall Street\u2019s earnings expectations for four consecutive quarters. Growth this quarter will likely continue to be driven by Apple\u2019s services and iPad segments \u2014 especially as hardware sales growth re-balances.<\/p>\n

<\/a>Trade war hits Apple where it hurts<\/h2>\n

President Donald Trump\u2019s tariffs-induced trade war has turned into a structural headwind for Apple\u2019s global operations. The company manufactures about 90% of its iPhones sold in the U.S. in China \u2014 and they\u2019re subject to steep tariffs\u2026 that could get even steeper.<\/p>\n

Trump has imposed a 145% levy on all goods imported from China. While the White House temporarily spared smartphones from the harshest penalties, the administration has hinted that those protections might be fleeting. Earlier this month, Apple\u2019s stock tumbled more than 25% around the president\u2019s \u201cLiberation Day\u201d tariff announcement. But shares rebounded 15% about a week later, following those early signs of a potential easing in smartphone-related tariff policies.<\/p>\n

The tariffs affect more than just Apple\u2019s iPhones, too. The Trump administration\u2019s restrictions on high-performance chips could affect Apple\u2019s supply chains \u2014 especially given the company\u2019s reliance on advanced semiconductors. Apple\u2019s response to the tariffs on China has been swift: The company has moved to sharply increase iPhone production in India, with a goal to manufacture all U.S.-bound units<\/a><\/span> there by 2026. But analysts remain cautious about the move. <\/p>\n

\u201cIndia is progressing, but it\u2019s not China,\u201d said Wedbush Securities analyst Matt Bryson. \u201cEfficiency and yield remain lower. Tariff mitigation is working \u2014 barely \u2014 but margins could come under pressure if this persists.\u201d<\/p>\n

Apple has also diversified production to Vietnam and Malaysia, but the geopolitical risk remains sticky. <\/p>\n

For years, China has been both a crucial manufacturing base and a major consumer market for Apple. But that dual role has become fraught. In the first quarter of 2025, Apple\u2019s shipments in China fell 8% to 12% year-over-year, driven by intensifying competition from domestic players such as Huawei, Xiaomi, and Honor, along with growing nationalistic preferences among Chinese consumers.<\/p>\n

In its second-quarter report, investors will look for clear guidance from Apple\u2019s leadership on how it plans to navigate escalating U.S.-China trade tensions \u2014 whether the company intends to absorb the rising tariff costs or pass them on to consumers; to renegotiate supplier contracts, or accelerate its supply chain diversification into other countries.<\/p>\n

And if price hikes are on the table, a big question will be whether Apple concentrates those increases on U.S. buyers or spreads them across its global customer base.<\/p>\n

\u201cThe biggest concern surrounding the Apple story is the trade war with China,\u201d Monness Crespi Hardt analyst Brian White said in a client note Thursday. \u201cEven under the most favorable outcome, we expect Apple\u2019s U.S. prices to increase, and manufacturing capacity to continue migrating out of China.\u201d<\/p>\n

<\/a>Can services provide enough of a Q2 boost? <\/h2>\n

If geopolitics represents the clear external threat, Apple\u2019s muted innovation cycle represents an internal one. Since the iPhone 11\u2019s launch in 2019, Apple has released strong \u2014 but evolutionary \u2014 hardware updates. Its iPhone 16 is approaching the midpoint of the cycle, and other product releases, such as the M3-powered iPad Air, are expected to only provide a limited boost.<\/p>\n

Apple has been slowly moving manufacturing of its Macs and iPads outside of China \u2014 but at a much slower rate than it has for its iPhones. As a result, those two categories could be ripe for more trade disruption. And even worse, Apple\u2019s much-hyped and ambitious AI initiative, Apple Intelligence, remains in limbo. Investors will certainly be looking for positive updates on that front.<\/p>\n

The good news for the company is that the services segment \u2014 which includes the App Store, iCloud, Apple Music, and other recurring streams \u2014 continues to grow at a healthy double-digit pace, now contributing nearly a quarter of total revenue. But with iPhone revenue still making up over 50%, services alone can\u2019t carry the growth narrative indefinitely.<\/p>\n

Despite the headwinds, Apple remains a cash-generating juggernaut. The company is expected to post net income of $24.2 billion this quarter. Long-term investors may see this pullback as a rare opportunity to buy into a still-dominant franchise under what they hope is temporary distress.<\/p>\n

But Apple\u2019s days as a pure growth story may be behind it. Earnings can no longer just hinge on product cycles; investors have to take into account how deftly the company can navigate global politics, diversify its supply chain, and close the widening AI gap \u2014 while still growing its product lineup, of course.<\/p>\n

Thursday\u2019s earnings call will offer one of the clearest signals yet: Is Apple still the safe haven stock of old \u2014 or has it become a bellwether of how trade wars and tech decoupling could reshape Silicon Valley\u2019s biggest players?<\/p>\n<\/div>\n

Read More<\/a>
\n Shannon Carroll<\/p>\n","protected":false},"excerpt":{"rendered":"

In This Story Wall Street is about to find out just how far the Apple ( AAPL -1.55% ) may fall from its trillion-dollar tree. As the Silicon Valley giant prepares to release its fiscal second-quarter earnings report on Thursday, the world\u2019s most valuable tech company finds itself at the intersection of profit \u2014 and<\/p>\n","protected":false},"author":1,"featured_media":844623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[376,165],"tags":[],"class_list":{"0":"post-844622","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-apple","8":"category-earnings"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=844622"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/844623"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=844622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=844622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=844622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}