Apple reported on Thursday that slightly beat Wall Street expectations as consumers stocked it on their iPhone amid fears of potential import taxes on signing devices from President Trump.
The Cupertino, California-based company said its revenue and profit for the second quarter ended March 29 was $1.65 per share, $953.6 billion and $1.65 billion, respectively, according to LSEG data. According to LSEG data, the iPhone sales were $46.844 billion, compared to an estimated $461.7 billion.
Apple's shares fell 1.5% in after-hours trading after results were announced.
The results were better than analysts expected, but investors will focus on how tariff concerns will arise in the coming quarter.
The Trump administration has so far spared electronics from tariffs, but Washington has shown that some taxes could come in the coming weeks. Uncertainty has led to Apple's stock being sent, which has reduced 90% of Chinese products by about 15% this year, wiping out more than $600 billion from market value.
Microsoft's bright forecast increased its market capitalization to $3.2 trillion, beating Apple to the top spot.
Apple is trying to reduce tariffs by moving US-bound iPhone production to India, Reuters reports. Analysts hope that the company will spread some of its tariff costs through its supply chain, but in the face of fierce competition and minimise price increases to avoid losing market share when deploying key artificial intelligence features such as the improvements to the Siri Voice Assistant.
Apple CEO Tim Cook told Reuters on Thursday that iPhone stock levels were comparable at the start and end of the second quarter, with no major stock accumulation during that period. Cook said the handset sales were boosted by the iPhone 16E, the company's $599 mid-market model, which includes its first custom modem chip.
The iPhone 16 is Apple's cheapest model, but it has enough powerful processor to run all the company's latest AI features.
“If you look at the active (iPhone) installed base, it reached a new high and did so in all geographical regions,” Cook told Reuters.
Apple said sales for the Apple Greater China segment fell to $16 billion, according to data from Visible Alpha. In China, Apple faces particularly tough competition with domestic manufacturers such as Huawei and Xiaomi, and has yet to deploy the key AI features announced almost a year ago.
Reuters previously reported that Apple has partnered with Alibaba to provide AI features in China, but Apple has not yet signalled when these features become available.
According to LSEG data, Apple said its services business had revenue of $26.65 billion compared to $26.65 billion. Cook told Reuters that Apple currently has over 1 billion payment subscriptions on its platform.
According to LSEG, Apple's accessories and wearable segment, including products such as Airpods, revenue was $7.525 billion, compared to $7.525 billion.
iPad and Mac sales were $6.4 billion and $7.95 billion, respectively, compared to analysts' expectations of $6.07 billion and $7.92 billion. Cook said the entry-level iPad performed best during the quarter.
Apple also said it had approved an additional $100 billion for its share, up 26 cents per share, with the board approved an additional $100 billion for its share buyback program.
