The Blubber

On Thursday, Apple reported quarterly results that slightly exceeded Wall Street expectations, driven by consumers buying iPhones in anticipation of possible import taxes under President Donald Trump.

The Cupertino, California-based tech giant posted fiscal second-quarter revenue of $95.36 billion and earnings of $1.65 per share, narrowly beating analyst forecasts of $94.68 billion and $1.63 per share, according to LSEG data. iPhone sales reached $46.84 billion, also ahead of the projected $46.17 billion.

Despite the beat, Apple’s stock slipped 1.5% in after-hours trading.

Investors are watching closely to see how trade tensions may affect the coming quarter. Apple executives are expected to provide forward-looking guidance during a conference call with investors at 5 p.m. EDT.

So far, the Trump administration has excluded electronics from tariffs, but signals from Washington suggest that levies could be imposed soon. The uncertainty has already dragged Apple shares down about 15% this year, erasing over $600 billion from its market valuation.

Meanwhile, Microsoft’s strong outlook has propelled its market capitalization to $3.2 trillion, overtaking Apple as the world’s most valuable company.

To counter potential tariffs, Apple is reportedly planning to shift more iPhone production to India, particularly for U.S.-bound units. Analysts believe Apple will spread tariff-related costs across its supply chain and keep price hikes minimal to maintain competitiveness amid growing pressure and delays in deploying new AI features—especially enhancements to Siri.

CEO Tim Cook told Reuters that iPhone inventory levels remained steady over the quarter, indicating no significant stockpile. He noted that sales were buoyed by strong demand for the iPhone 16e, Apple’s $599 mid-range handset featuring the company's first proprietary modem chip.

Although it’s the most affordable in the lineup, the iPhone 16 can still support all of Apple’s latest AI innovations thanks to its powerful processor.