From CNBC: 2025-05-01 20:43:00

Apple reported revenue of $95.4 billion in Q2, a 5% increase from the previous year, with earnings per share at $1.65. Despite beating estimates, a services revenue miss caused a 4% drop in stock price after hours. China revenue was light, but CEO Tim Cook cited strong iPhone sales in urban China. Apple plans to source products from India to avoid tariffs. Cook mentioned a $500 billion investment in the U.S. over the next four years. Apple provided no formal guidance but expects low to mid-single-digit growth in Q3. The company ended the quarter with $133 billion in cash and marketable securities. Apple’s net cash-neutral strategy funds dividends and buybacks. Cook announced a 4% dividend increase and an additional $100 billion for share repurchases. Apple’s dominant hardware and growing services businesses provide a competitive moat and bundling opportunities. Competitors include Samsung, Xiaomi, OPPO, Dell, and HP Inc. Apple’s stock price target was reduced to $245 due to a difficult operating environment. Management expects operating expenses to rise in the upcoming quarter. Apple reported strong iPhone 16 sales in regions with Apple Intelligence AI features. Apple is moving its iPhone supply chain to India to minimize tariff exposure. Cook mentioned that the supercharged version of Siri has been delayed to meet quality standards. Jim Cramer advised selling some Apple shares due to trading restrictions. Apple’s services revenue grew by 11.6% to $26.65 billion. Most iPhones sold in the U.S. in the June quarter will be shipped from India. Apple plans to expand teams and facilities in states like Michigan, Texas, and California. Apple reported $85.78 billion in sales during the June quarter last year. Gross margin for the upcoming quarter is expected to be lower than the previous quarter. Cook confirmed plans for annual dividend increases. Apple’s performance was strong, but a small services revenue miss led to a drop in stock price.



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