Apple quarterly sales and profit beat expectations as tariffs loom

Apple on Thursday reported results that narrowly beat Wall Street expectations as consumers stocked up on iPhones amid fears of potential import taxes on its signature device from President Donald Trump.

The Cupertino, California-based company said its sales and profit for the fiscal second quarter ended March 29 were $95.36 billion and $1.65 per share, respectively, compared with analyst estimates of $94.68 billion and $1.63 per share, according to LSEG data. Sales of iPhones were $46.84 billion, compared with estimates of $46.17 billion, according to LSEG data.

APPLE UNVEILS HISTORIC $500B INVESTMENT IN US MANUFACTURING, INNOVATION: ‘BULLISH ON THE FUTURE’

Apple CEO Tim Cook speaks during Apple’s “It’s Glowtime” event in Cupertino, California, September 9, 2024. (Photo by Nic Coury / AFP) (Photo by NIC COURY/AFP via Getty Images) (Nic Coury / AFP via Getty Images / Getty Images)

Apple shares were down 1.5% in after-hours trading after the results were released.

While the results were better than analysts had expected, investors are focused on how tariff concerns will play out in the coming quarter. Apple executives will give forecast information on a conference call with investors starting at 5 p.m. EDT.

The Trump administration has so far spared electronics from tariffs but Washington has signaled that some levies could come in the weeks ahead. The uncertainty has sent shares of Apple, which makes 90% of its products in China, down about 15% this year, wiping off more than $600 billion from its market value.

Microsoft’s upbeat forecast took its market capitalization to $3.2 trillion, beating Apple to clinch the top spot.

Apple will try to mitigate tariffs by shifting production of U.S.-bound iPhones to India, Reuters has reported. Analysts expect the company to spread some of the tariff costs through its supply chain, while keeping price increases to a minimum to avoid losing market share at a time when it faces fierce competition and has experienced delays in rolling out key artificial-intelligence features such as improvements to its Siri voice assistant.

Apple CEO Tim Cook told Reuters on Thursday that iPhone inventory levels at the beginning and end of the fiscal second quarter were comparable, meaning there was no large inventory buildup over the period. Cook said handset sales were boosted by the iPhone 16e, the company’s $599 mid-market model that contains its first-ever custom modem chip.

APPLE IPO ANNIVERSARY: HOW MUCH WOULD A $1,000 INVESTMENT BE WORTH TODAY? 

The new move will likely ease the blow for consumers while giving a boost to electronics giants such as Apple, Samsung and Dell. ( Faris Hadziq/SOPA Images/LightRocket via Getty Images / Getty Images)

The iPhone 16 is Apple’s most inexpensive model but has a sufficiently powerful processor to run all of the company’s newest AI features.

“When you look at the active (iPhone) installed base, it did hit a new high, and…