Apple Reports Strong Q2, Addresses Tariff Concerns

Apple reported better-than-expected quarterly earnings, with iPhone sales exceeding forecasts and overall revenue growing, despite ongoing investor concerns over potential US import tariffs. CEO Tim Cook emphasized that Apple has proactively shifted much of its US-bound iPhone production to India and its other products like Macs and iPads to Vietnam, both of which face significantly lower tariffs compared to China. While Apple continues to manufacture most devices for non-US markets in China, this diversification in its supply chain is intended to buffer the company from future tariff impacts. Cook noted that recent tariff increases on Chinese imports have had a limited effect so far, and Apple chose to absorb higher costs rather than pass them to consumers for now. The company remains engaged in discussions with both the US government and international partners and is optimistic about further reducing risk by increasing production in India. Despite current stability, uncertainty remains due to the unpredictable nature of US trade policy and potential future tariff changes.