Apple's fiscal Q2 results beat estimates but warn of $900 million in tariffs, facing growth challenges.

From Nasdaq: 2025-05-07 04:30:00

Apple (NASDAQ: AAPL) shares fell after announcing its fiscal Q2 results, beating revenue and earnings estimates but warning of $900 million in tariffs this quarter. iPhone growth is stagnant, and AI struggles persist. Despite its profitability and services success, Apple faces challenges that make it a less attractive investment option now.

The quarter ending in March saw Apple generate $95.4 billion in revenue and $1.65 per share in earnings, with iPhone sales accounting for half of the business. However, concerns about tariffs impacting Q3 and ongoing AI struggles overshadowed these results. iPhone revenue growth remains lackluster, and AI development lags behind competitors.

Apple’s iPhone business is stagnating, with a modest 10% increase in unit sales failing to impress. The company faces challenges in AI development, with Siri falling behind rivals like Google. The potential deal with Alphabet to use Google’s AI model highlights Apple’s AI shortcomings and raises concerns for investors about the company’s future growth prospects.



Read more at Nasdaq: Sorry, but Tariffs Are the Least of Apple’s Problems Right Now