Tariff horror, slow AI rollouts, and Apple’s blow-off revenues damaged by stock prices barely moving
apple Blowout revenue reported on Thursday, It beat Wall Street forecasts with its biggest revenue growth rate since December 2021. However, analysts have stifled market responses, citing concerns over long-term issues such as tariffs and AI.
The company reached $94 billion in the quarter ending June 28th, marking a 10% increase from last year, marking strong iPhone demand, a surge in service revenue and a solid performance across the international market. Earnings per share was $1.57, with analysts who were at $1.43 well ahead of forecasts. Net profit rose 12%, with total margins engraved at up to 46.5%.
Despite positive results, the company has received modest responses from investors, with its stock trading at just over 2%. Apple is already dealing with a tough year, with its share price falling 17% per year.
“$AAPL stock is up 2% with great news and guidance, highlighting that investors don’t believe it is sustainable.” I said in X’s post. Munster Apple Stock said It became the ‘show me’ story as investors worry about tariffs, regulatory changes and Apple’s AI strategy coming back to consider growth.
Customs Duty reaches the cost
A slightly muted response can lead to some ongoing pain in Apple. President Trump’s tariffs on AI races and China and India.
Tariffs collide with slightly less companies than previously estimated, with Apple’s costs not around $800 million; $900 million CEO Tim Cook predicted in March. Cook said the impact was primarily linked to Trump’s tariffs on China, which was a hit “early the year.”
Kate Leaman, chief market analyst at Avatrade, said luck The apple was clearly nervous about the further impact of tariffs.
“The risks to Apple are real,” she said. “Regulations are coming, tariffs are back in headlines, and the US is still locked in negotiations with China. And global politics and supply chains are still important for companies like Apple.”
The tariff issues appear to get worse before the tech giant gets better.
“We assume that the current global tariff charges, policies and applications will not change to the quarterly balance and no new tariffs will be added in the September quarter,” Cook said in a revenue call Thursday. “We estimate the impact of adding about $1.1 billion to our costs.”
Wedbush’s Dan Ives faces the most aggressive tariffs from the Trump administration despite the continued focus on production in India, called “Apple’s problem” and despite the fact that the majority of iPhones sold in the US are made domestically rather than China.
“Trade policy remains unstable and uncertain, and Apple is keenly aware of the importance of staying on the right side of the administration. So that anger and tariff risks do not increase.” “It’s not surprising that Tim Cook has highlighted several times Apple’s continued investment in US and American innovations was very special.”
Pressure on Apple’s AI Roadmap
Apple has long faced criticism for its apparent failure to take advantage of the AI boom, and its recent revenues seem to have not healed investors.
“AI is the elephant in the room,” Ives, who is not impressed by the company’s AI efforts, said in a memo. “Although Apple is expanding its AI investment internally, the reality is that it doesn’t move the needle and patience is fading for investors.”
Apple recently won several hits in its AI initiative, Lose at least 4 A well-known AI researcher on Meta’s “Superintelligence” team. It was a particularly tough hit on Apple, Meta He managed to seduce Ruoming Pang, the company’s AI division leader, with a compensation package reportedly valued at over $200 million. Apple’s hits to talent didn’t help the perception that it was lagging behind its competitors in the AI space.
“The AI revolution has been the biggest technology trend in 40 years and now we’re seeing this from the park bench where Apple is drinking lemonade, but all other big tech companies are competing for Formula 1 drivers to build AI strategies and monetization plans,” Ives says. “In our opinion, this continues to be a major issue for chefs. This is a black eye moment for apples and the main anchor on the ship.”
Despite Cook confirming that Apple is increasing its internal AI investment, some investors, including IVE, are hoping the company will regain some position through external partnerships or significant M&As. Cook It’s already signaling The company was “opened to M&As to accelerate (Apple) roadmap.”
Chatterjee called the urgency of its AI “taptable” and observed “the quiet approval of its slowing in recognition that it may be heavily leaning towards acquisition to compress the timeline.”
Some investors hope that Apple will acquire AI Darling Perplexity. This hopes to get a rapidly growing AI search startup that is considered a potential stepping stone to overhaul Siri and close Apple’s AI gap. Google and Microsoft.
“There are rumours swirling about a confusion deal, and if that happens, it could significantly accelerate Siri’s elusive promises that are more effective,” says Chatterjee.