However, attention will focus on Apple’s outlook amid the Trump Administration’s tariff spree and the high-stakes trade war between the United States and China.
Apple is expected to report its Q2 FY’25 results in early May. Earnings are projected to reach about $1.61 per share, compared with $1.53 per share in the year-ago quarter, driven by higher services revenues and share repurchases.
However, attention will focus on Apple’s outlook amid the Trump Administration’s tariff spree and the high-stakes trade war between the United States and China. U.S. tariffs on China now stand at about 245% on some imports, although electronics—including smartphones and laptops—are exempt, a reprieve that President Trump indicated would be temporary. This could be a significant setback for Apple, which, by some estimates, produces 9 out of 10 of its iPhones in China. Investors will be looking for clarity on how Apple intends to manage its supply chain and U.S. business under these circumstances. We estimate that, in a worst-case scenario, tariffs could reduce Apple’s earnings by as much as 30%.
