Apple Faces Uncertainty Ahead of Earnings Amid Tariff Concerns

WASHINGTON, D.C. — Apple Inc. is set to report its fiscal second-quarter earnings on Thursday, May 1, 2025, focusing on how President Donald Trump‘s tariffs might affect the company’s operations. Investors are particularly interested in the effects of tariffs on sales, earnings, and product prices.

For the first time, Apple and CEO Tim Cook have not publicly addressed the tariffs announced on April 2, which could reach as high as 145% on imports from China. This is significant, as Apple generates about three-quarters of its revenue from physical products made predominantly in China, with the U.S. being its largest market.

Analysts from TD Cowen project that these tariffs could reduce Apple’s annual earnings by 6%. The company’s guidance practices have also changed; although it has not provided formal guidance since 2020, it typically shares various data points to assist investors in forecasting.

Currently, analysts expect Apple to signal $89 billion in sales for the quarter ending in June, a 4% increase compared to the previous year. Notably, there could be a positive impact from U.S. consumers purchasing more iPhones in anticipation of the tariffs, with estimates predicting revenue could reach $94.68 billion, a 4.2% year-over-year increase.

Concerns about the company’s sales in China continue as well. Some analysts fear rising nationalism could diminish the iPhone’s appeal in the Chinese market and that ongoing trade tensions could exacerbate existing rivalries. FactSet analysts estimate that Apple’s sales in mainland China could account for $17 billion, reflecting a 3.6% growth year-over-year.

Amid these uncertainties, Bank of America analysts suggest maintaining a “buy” rating, albeit lowering their price target from $250 to $240 due to economic uncertainties. They believe there could be a short-term upside driven by increased demand ahead of tariffs but caution that consumer concerns about the economy may weaken future demand.

Overall, analysts are eyeing a second-quarter revenue of approximately $94.72 billion with a net income of $24.47 billion, or $1.63 per share, marking an increase from $23.64 billion, or $1.53 per share, last year.

As Apple prepares for its earnings announcement, it faces increasing scrutiny from investors keen to understand the implications of tariffs on its substantial operations reliant on China and future strategies to shift production to India.