Apple is gearing up for its Q2 earnings report on Thursday, navigating tariff and supply chain hurdles. Tariffs are a key focus for investors, with China, the primary iPhone manufacturing hub, hit by a 145% levy. Apple Intelligence, as well, remains a priority for investors, likely much more important than tariff concerns longterm.
Jordan Hart for Business Insider:
Thursday afternoon will be Apple’s moment to speak for itself on the fate of its products and manufacturing. Tariffs, of course, will be the vocabulary word for this earnings season, and the company is facing steep rates if things continue how they are.
Jacob Bourne, analyst at BI sister company EMARKETER, said there are three key tariff-related issues for this earnings call: “Apple’s ability to absorb, avoid, or pass on potential price increases, the financial impact of tariffs, and the timeline for effective supply chain diversification.”
The fourth question that Apple will likely need to answer for investors isn’t tariff-related, but rather around the progress of Apple Intelligence going into Q2. “The tariff brouhaha may have distracted many Apple watchers from the AI conversation, but this intrinsic factor remains vital to Apple’s success,” [Dipanjan Chatterjee, vice president and principal analyst at Forrester] said.
Chatterjee said investors will, once again, ask when “the promise of an Apple Intelligence-powered upgrade super cycle come to fruition.”
MacDailyNews Take: Expect Apple CEO Tim Cook to give little or no meaningful insight on tariffs (“we continue to monitor the situation”) and not much more on Apple Intelligence as Cook is currently in the midst of rearranging the deck chairs on that issue as he tries to clean up the mess from yet another of his bad high-profile hires (John Giannandrea).
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