Apple faces challenges from U.S. tariffs and competition in China. Analysts expect a 4.2% rise in revenue to $89.34 billion for the April-June quarter. Trump’s tariffs on foreign-made iPhones pushed Apple to shift production to India, leading to a 240% increase in Indian-made smartphones. Analysts predict a limited impact from tariffs, with iPhone sales expected to rise 2.2% in the fiscal third quarter.

Apple’s sales in China improved during the quarter, driven by discounts and subsidies. However, sales of other devices may have slowed, while services revenue is expected to grow by 10.7%. Concerns linger over Apple’s AI strategy, as domestic competitors in China launch AI-packed smartphones. Apple’s delayed rollout of AI features raises doubts about its growth prospects in the industry.

Read more at Yahoo Finance: Apple earnings under pressure from tariffs, slow AI roll-out