Apple reports $900 million tariff impact, CEO addresses supply chain resilience

Apple reported strong second-quarter financial results with a 5% revenue increase to $95.4 billion and net profit rising to $24.78 billion, surpassing analyst expectations. iPhone sales grew by 2% while Mac and iPad sales saw notable increases, though Services revenue growth slowed compared to previous quarters. Despite these gains, Apple’s stock declined as investors grew concerned about the uncertain long-term impact of tariffs imposed by the Trump administration. CEO Tim Cook stated that tariffs had a limited effect so far due to supply chain optimizations, including diversifying production outside China and importing devices ahead of tariff deadlines, but warned that the upcoming quarter could see up to $900 million in additional costs. Cook emphasized the difficulty in predicting tariff impacts beyond June, highlighting the unpredictability of future government policy. The company authorized a new $100 billion share buyback and maintained its dividend, but warned that tariffs are likely to be a significant headwind for the next quarter.