Apple Reports Q2 Earnings, China Sales Miss Expectations

Apple reported fiscal second quarter results that slightly exceeded Wall Street expectations, with overall revenue and iPhone sales coming in above analyst estimates. However, the company’s sales in China fell more than anticipated, declining 2.3% to $16 billion, which overshadowed its otherwise solid performance. Apple attributed some of its strong iPhone sales to consumers stocking up amid concerns about potential tariffs. CEO Tim Cook indicated that looming Trump administration tariffs could add $900 million in costs for the next quarter, although the company is exploring shifting production to countries like India and Vietnam to mitigate the impact. Analysts expect Apple to spread some of these costs through its supply chain rather than pass significant price increases to consumers, as the company faces heightened competition and delays in rolling out new AI features. Despite these challenges, Apple raised its dividend and authorized a $100 billion share buyback, signaling confidence in its financial position.