Jin’s Daily Trivia – 5 Things You Should Know from Apple’s Q2 FY25 Earnings Call 🍎

Jin’s Daily Trivia – 5 Things You Should Know from Apple’s Q2 FY25 Earnings Call 🍎

The GOOD: • Revenue Growth – Apple made more money: $95.4 billion USD, a 5% year-over-year increase, beating analyst expectations. • Record Services Revenue – Apple’s services (App Store, iCloud, Apple TV, etc.) hit an all-time high of $26.6 billion USD. • Shareholder Returns – Apple announced a $100 billion stock buyback plan and a 4% dividend increase.

The BAD: • Tariff Impact US/China – Tim Cook reported a $900 million cost increase expected in Q3 FY25 due to tariffs. Almost all U.S.-bound Apple products are now shipped from India and Vietnam. • China Sales Slowdown – China revenue came in at $16 billion, falling short of the $17 billion expectation.

Verdict:

As expected, Apple’s stock dipped following the news of tariff impacts. Tim Cook noted that the tariff situation is evolving too rapidly for long-term forecasting. However, he highlighted Apple’s geographically diverse supply chain as a buffer:

“If you look at the U.S., over half of the iPhones sold come from India,” he said. “For other products—Mac, iPad, AirPods, and Watch—almost all originate from Vietnam.”

Hope you learn something new today!! See ya!!