Apple quarterly sales and profit beat expectations as tariffs loom

On Thursday, Apple informed the results that have tightly defeated Wall Street’s expectations, as consumers were stored on iPhone, amid fears of potential import taxes on president Donald Trump.

Cuburno -based Cuburno said its sales and profits for the second quarter ended on March 29 was 95.36 billion dollars and $ 1.65 per share, respectively, compared to estimates of analysts of 94.68 billion dollars and $ 1.63 per share, according to LSEG data. IPhone sales amounted to $ 46.84 billion, compared to $ 46.17 billion, according to LSEG data.

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Apple Tim Cook CEO speaks during the Apple “Ittime” event at Cupertino, California, September 9, 2024. (Nic COORY / AFP via Getty Images / Getty Images)

Apple shares decreased by 1.5 % in trading after hours after the results are released.

Although the results were better than what analysts expected, investors focus on how to operate customs tariff concerns in the next quarter. Apple’s executive officials will provide expected information about a collective call with investors starting at 5 pm EST.

The Trump administration has so far succeeded in definition electronics, but Washington indicated that some fees could come in the coming weeks. The uncertainty has sent the shares of Apple, which makes 90 % of its products in China, a decrease of about 15 % this year, giving more than 600 billion dollars in its market value.

Microsoft optimistic forecast increased to $ 3.2 trillion, overcoming Apple to achieve first place.

Apple will try to reduce definitions by transferring the production of iPhone devices associated with the United States to India, Reuters said. Analysts expect that the company will publish some costs of customs tariffs through its supply chain, while maintaining price increase to the minimum to avoid losing its share in the market at a time when it faces fierce competition and witnessed a delay in offering major synthetic features such as the improvements in Siri Voice.

Tim Cook, CEO of Apple, told Reuters on Thursday that the levels of iPhone stocks at the beginning and end of the second fiscal quarter were comparable, which means that there was no large stock accumulation during this period. Cook said that the sales of the phone were strengthened by the iPhone 16e, which is the market model in the middle of the market worth $ 599, which contains the first allocated modem chip ever.

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It is possible to reduce the new step from a blow to consumers while giving a boost to electronics giants like Apple, Samsung and Dell. (Lightrockquket/Lightrockket via Getty Images/Getty Images)

The iPhone 16 is the most inexpensive Apple, but it has a strong enough processor to operate all the company’s artificial intelligence features.

“When you look at the active (iPhone) base, I hit the highest new level, and I did so in every geographical region,” Cook told Reuters.

Apple said sales in its largest segment in China have decreased to $ 16 billion, better than the expectations of analysts of 15.9 billion dollars, according to data from the visible alpha. In China, Apple faced special competition in particular from local makers such as Huawei Hwt.ul and Xiaomi 1810.hk and the main AI features have been announced nearly a year ago.

Reuters reported earlier that Apple had a partnership with Alibaba to provide artificial intelligence features in China, but Apple did not indicate how long these features will be available.

Apple said that sales in its service business amounted to 26.65 billion dollars, compared to estimates of 26.69 billion dollars, according to LSEG data. Cook told Reuters that Apple now has more than a billion subscriptions paid on its platform.

Chicago, Illinois – November 28: Apple logo suspended over Apple Retail Store on November 28, 2022 in Chicago, Illinois. Apple is currently facing a shortage of iPhone supplies due to the restrictions (Scott Olson / Getty Images / Getty Images)

In the Apple accessories and wearing sector, which includes products like AirPods, revenues amounted to $ 7.52 billion, compared to estimates of $ 7.85 billion, according to LSEG.

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The sales of iPad and Macs 6.40 billion dollars and 7.95 billion dollars, respectively, compared to the expectations of analysts of 6.07 billion dollars and 7.92 billion dollars. Cook said that IPADS devices for beginners were better during a quarter.

Apple also said that it would increase its cash profits by 4 % to 26 cents per share and that its council has authorized $ 100 billion for the shares resets.