As the US-China trade tensions escalate under the Trump administration, Apple’s quarterly earnings have surpassed projections with a revenue of $95.4 billion and an increase in earnings per share of 7%.
Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations, with revenue of $95.4 billion, up more than 4% over last year, and earnings per share of $1.65, up more than 7%. The company has beaten Wall Street’s expectations for the previous four quarters.
Investors have been keeping a close eye on Apple as it prepared to report its financial results amid Donald Trump‘s sweeping tariffs on countries around the world. Since the beginning of the year, Apple’s stock has slumped 16%. During a call with investors on Thursday, Tim Cook, ‘the CEO’ said that he expects the tariffs to add $900m to its costs for the upcoming quarter that ends in June.
Donald Trump is a businessman, television personality, and politician who served as the 45th President of the United States from 2017 to 2021.
Born on June 14, 1946, in Queens, New York, Trump graduated from the University of Pennsylvania with a degree in economics.
He built his business empire through real estate development and hosted the reality TV show 'The Apprentice.'
Trump entered politics in 2015, winning the Republican presidential nomination and defeating Hillary Clinton in the 2016 election.
Trump said consumer electronics would be exempted from his soaring tariffs on China, though it is unclear for how long. However, it is unclear how lasting this reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption ‘temporary,’ and even Trump later said on social media that there’s been no ‘exception.’
Donald Trump's tariffs refer to a series of trade policies implemented by the 45th President of the United States.
In 2018, he imposed tariffs on imported steel and aluminum from various countries, including Canada, Mexico, China, and the European Union.
The tariffs were initially set at 25% for steel and 10% for aluminum.
Trump's goal was to reduce the US trade deficit and protect domestic industries.
However, the move sparked a global trade war, with many countries retaliating with their own tariffs on US goods.
The impact of Trump's tariffs is still debated among economists, but they are widely seen as a key factor in the ongoing trade tensions between the US and its major trading partners.
Apple’s reliance on Chinese manufacturing for its phones, tablets, and laptops makes it vulnerable to supply chain disruptions. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics. Apple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump‘s tariffs.
What remains to be seen is how much of any increased cost will be passed on to consumers, and if consumers will absorb these price increases without pulling back on demand for Apple products. Analysts say that the tariff confusion could benefit Apple as people rush to buy more of its products in fear that prices will rise.
In the short term, analysts believe that the tariff confusion could benefit Apple as people rush to buy more of its products in fear that prices will rise. However, in the longer term, it is unclear how much impact the tariffs will have on the company’s bottom line and consumer demand.
