Apple Q2 2025 Earnings Beat Estimates Despite Tariff Impact
Apple reports strong Q2 2025 earnings, beating forecasts with $95.4B revenue despite China sales dip and U.S. tariffs. Read full report.

Apple Reports Strong Q2 2025 Earnings Amid Global Headwinds
Apple Inc. reported its fiscal second-quarter earnings for 2025 on May 1, exceeding Wall Street expectations despite ongoing challenges such as new U.S. tariffs and weakening sales in China. The company’s ability to deliver strong financial results highlights the resilience of its core business and its efforts to diversify operations in a turbulent global environment.
Financial Performance
According to Apple’s official press release, the company posted $95.4 billion in revenue for the quarter, representing a 5% increase compared to the same period last year. Earnings per share stood at $1.65, up 8% year-over-year, with a net income of $24.78 billion.
Apple's flagship product, the iPhone, accounted for $46.84 billion in sales—a 1.9% increase—fueled in part by consumers making early purchases ahead of anticipated price hikes due to tariffs. Services revenue also reached a new all-time high at $26.65 billion, reaffirming Apple’s shift toward subscription-based income. Sales of Mac and iPad devices came in at $7.95 billion and $6.40 billion respectively, slightly exceeding analyst forecasts.
Source: AP News
Strategic Supply Chain Shifts
In response to the U.S. government’s recent imposition of a 20% tariff on goods imported from China, Apple expects to incur approximately $900 million in additional costs during the upcoming June quarter. To mitigate this impact, the company is implementing major changes to its global supply chain.
As reported by Business Insider, iPhone production for U.S. markets is being shifted to India, while manufacturing of iPads and Mac computers is being relocated to Vietnam. These adjustments are intended to reduce tariff exposure, though analysts caution that production in India and Vietnam could be up to 8% more expensive than in China, which may place pressure on Apple's gross margins in future quarters.
Market Reaction and Investor Sentiment
Despite the overall positive results, Apple’s stock fell by more than 4% in after-hours trading. Investor concerns centered on several key issues: the $900 million increase in projected costs, a 2.3% year-over-year decline in revenue from Greater China (which now stands at $16 billion), and delays in rolling out new artificial intelligence features, including the next iteration of Siri, now expected in 2026.
According to The Times, some of the company’s customer base may be accelerating purchases of iPhones in anticipation of price hikes, indicating potential challenges for future demand.
Shareholder Returns and Sustainability Initiatives
Apple’s board of directors approved a 4% increase in its quarterly dividend, raising it to $0.26 per share, payable on May 15, 2025. Additionally, the board authorized a new $100 billion stock repurchase program, signaling continued confidence in the company’s long-term growth prospects.
On the environmental front, CEO Tim Cook emphasized Apple’s commitment to sustainability. The company has reportedly achieved a 60% reduction in its carbon emissions over the past decade, reinforcing its position as a leader in corporate environmental responsibility.
Outlook
While Apple’s second-quarter performance demonstrates strong fundamentals and adaptability, the company faces several headwinds going forward. These include rising production costs, shifting trade policies, competitive pressures in key international markets, and delays in the rollout of advanced technologies. Analysts and investors will be closely watching Apple’s strategies in the second half of the year, particularly in relation to new product releases, AI development, and further shifts in its manufacturing footprint.