Tech giant Apple, led by CEO Tim Cook, delivered revenue of $95.36 billion for the second quarter of 2025 overshadowed by sweeping new tariffs imposed on China by the Trump administration.
The iPhone maker’s overall revenues, up 5 percent year-on-year, surpassed analyst expectations after a consensus estimate from FactSet forecast Apple would record $94.4 billion in revenue.
Apple’s services segment, which includes Apple TV+, Apple Music, Apple Arcade and other products, posted overall revenue of $26.65 billion, up 11.6 percent from a year-earlier $23.8 billion and a slight miss on an analyst consensus estimate for $26.70 billion for Q2 2025.
The iPhone maker reported net income of $24.7 billion, up from $23.6 billion in 2024, and earnings per-share came in at $1.65, up from a year-earlier $1.53, and beating an analyst forecast of $1.63 for the latest quarter.
During an after-market analyst call, Apple execs are expected to discuss a potential impact on demand for its products from the U.S.-China trade war and how the tech giant will deal with fall out from the Trump administration’s global trade war affecting supply chain costs out of China, Vietnam and India.
Tariff exemptions have been allowed for smartphones and other electronics, if only temporarily. But the looming talks on reducing or ending sweeping new tariffs on China has rattled investors for its potential impact on Apple’s global-spanning business.
Other tariffs-induced impacts, including recessionary pressures on a wobbly economy leading to lower consumer spending, could impact subscriber numbers for Apple TV+ and Apple Music and whether iPhone users upgrade to the newer handsets. The tech giant reported “record viewership” for Apple TV+ during the second quarter, without breaking out numbers.
CEO Cook during an analyst call pointed to plans to spend around $500 billion over four years in the U.S. market, and to open a factory for “advanced server manufacturing” in Texas this year for high-performance computing, data centers and other applications. But that was far short of answering calls from U.S. President Donald Trump to move production of the iPhone and other popular electrical products to the U.S., rather than continue to off-shore manufacturing.
Cook said the tariffs impact on Apple during the second quarter to March 29, 2025 was “limited” as the company managed its supply chain costs and product inventory and consumers bought new products before Trump’s tariffs regime kicks in. But making projections for the third quarter and the rest of 2025 has been more problematic.
Cook did forecast the current global tariff rates, absent new ones to come from the Trump administration, would add around $900 million to costs at Apple for its April-to-June quarter. “I don’t want to predict the future, because I’m not sure what will happen with the tariffs,” the Apple CEO added when pressed by an analyst to forecast future tariff-related costs for the tech giant, which so far have mostly hinged on a product’s country of origin.
“As we look ahead, we remain confident that we will continue to build the world’s best products and services, confident in our ability to innovate and enrich our users’ lives and confident that we continue to run our company in a way that has always set Apple apart,” the Apple boss did tell analysts in earlier prepared remarks on the conference call.
Cook spoke against a global market background where Apple is caught between being unable to move the manufacture of electronic products to the U.S. market without years of delay to new American factories, and facing likely consumer pushback for its marquee products in China and elsewhere internationally as Trump imposes fast-shifting tariffs to reshape global trade.
Apple is working hard to move production of its iPhones and other electronic products out of China, which faces the steepest U.S. tariffs globally, based on the country of origin for manufacturing. For the current third quarter to June 2025, Cook predicted India will be where the “majority” of iPhones sold in the U.S. originate, and Vietnam will be where virtually all iPads, Mac computers, Apple Watches and AirPods are made.
“What we learned some time ago was that having everything in one location had too much risk with it, and so we have over time and with certain parts of the supply chain — not the whole thing, but certain parts of it — opened up new sources of supply, and you could see that kind of thing in the future,” Cook said in answer to an analyst question about supply chain risks.
Cook didn’t make predictions on the mix of country of origins to produce iPhones and other Apple electrical products beyond the third quarter. To weigh possible future tariff-related costs, the Cupertino, California-based company and other major U.S. retailers face a Section 232 investigation due to the Trade Expansion Act of 1962, where the U.S. Secretary of Commerce is probing the impact from imports on U.S. national security.
