Apple, which for many years was seen as the safest haven among Big Tech companies, faces a challenging situation ahead of its financial results to be announced this Thursday, with US tariffs, fierce competition in China, and a delayed AI strategy.
Wall Street expects Apple to report revenue of $89.34 billion, a 4.2% increase in the April-June quarter. However, the main focus will be on how Apple will adapt to the new trade environment that threatens its global supply chain.
Former US President Donald Trump criticized Apple’s overseas manufacturing and threatened a 25% tariff on iPhones produced abroad. To mitigate these risks, Apple shifted iPhone production destined for the US to India. This move increased Indian-sourced smartphone production by 240% in the second quarter of 2025.
Analysts say this strategy could significantly reduce the $900 million tax burden Apple estimated in May. However, Apple remains vulnerable to trade wars because it offers a product that the Chinese and US governments can “easily pressure.” Many experts say Apple may have deliberately kept potential tax costs high in order to report higher-than-expected profits. iPhone Demand is Increasing in China iPhone sales are expected to increase by 2.2% in the third fiscal quarter. Demand, particularly in China, has been boosted by massive discounts during the 618 shopping festival, government-backed trade-in campaigns, and iPhone 16 Pro promotions. According to Counterpoint Research, iPhone sales in China rose 8% this quarter. […] […] However, sales of Apple’s other devices are expected to slow. The company’s rapidly growing services revenue is expected to increase by 10.7%. This rate was 11.6% in the previous quarter.
Delayed Moves in AI Raise Concern
Apple’s cautious approach to artificial intelligence is raising questions about the company’s future growth potential. While competitors are releasing devices equipped with innovations such as generative AI, Apple’s late announcement of the Apple Intelligence package and ChatGPT integration has drawn criticism. The major AI update for Siri has been postponed to 2026.
