Apple Q2 2025 Earnings Rise 5%, Warns of $900M Tariff Hit Amid Manufacturing Shift

Apple Inc. reported its fiscal Q2 2025 earnings, with revenue increasing by 5% to $95.4 billion and profit growing by 8% to $24.8 billion. The company's services segment achieved an all-time high revenue of $26.65 billion, up from $23.87 billion the previous year. iPhone sales increased by 2% to $46.84 billion, driven by demand for the mid-range iPhone 16e. Mac revenue rose 7% to $7.95 billion, and iPad revenue grew 15% to $6.4 billion. Gross margins reached 47.1%.

CEO Tim Cook addressed the impact of U.S. tariffs on Chinese imports, stating that Apple did not see significant demand pull-forward due to tariffs in the March quarter. However, he warned that tariffs could add approximately $900 million to the company's costs in the June quarter. In response to these tariffs, Apple is shifting its manufacturing base, with half of the iPhones sold in the U.S. now coming from India, and the majority of iPads, Macs, Apple Watches, and AirPods being sourced from Vietnam. Despite the tariff impact, Apple has not announced any price increases.

Cook also discussed delays in the rollout of more personalized Siri features, stating that Apple needs more time to ensure these features meet the company's high-quality standards. This delay has been a point of interest among investors and consumers, as Apple Intelligence was a highlighted feature in recent product announcements. Apple has trimmed its share buyback program by $10 billion, and its stock price dropped following the earnings announcement.