Apple has announced its Q2 2025 financial results. The company reported $95.4 billion in revenue, a 5% increase compared to the same period last year. Net profit reached $24.78 billion, surpassing Wall Street expectations.
iPhone sales rose 2% to $46.84 billion. The newly launched iPhone 16e model played a key role in this growth. Mac sales jumped 7%, while iPad sales climbed 15%. Apple’s strongest performance came from services, with revenue up 12% to a record $26.65 billion.
Apple CEO Tim Cook stated: “We are excited to add iPhone 16e to our lineup. We’ve introduced new Mac and iPad models powered by the extraordinary Apple Silicon. Over the past decade, we’ve reduced our carbon emissions by 60%.”
Despite the positive numbers, Apple faces major challenges. President Trump’s 20% tariffs on Chinese-made products cost Apple an extra $900 million this quarter alone. To mitigate the impact, Apple is shifting iPhone production to India and moving other product manufacturing to Vietnam.
Apple plans to produce most U.S.-sold iPhones in India
According to Cook, Apple plans to produce most U.S.-sold iPhones in India. This strategy aims to reduce reliance on China. However, analysts warn that manufacturing costs in India are 5-8% higher compared to China.
Meanwhile, Apple announced a $100 billion share buyback program and increased its dividend payout by 4% to $0.26 per share. Still, these positive moves didn’t satisfy investors, as Apple’s stock fell 4% in after-hours trading.
Apple also struggles in the artificial intelligence space. The introduction of new Siri features has been delayed again. Reports suggest the company is considering integrating Google’s Gemini AI technology into Siri.
Apple is preparing to increase iPhone production in India. This will significantly reduce production costs.
Another headache for Apple comes from its App Store policies. Major players like Epic Games and Spotify continue legal battles, aiming to bypass in-app payment systems and direct users to their websites.
Despite its strong financial performance, Apple faces a tough road ahead with trade wars, rising production costs, and AI delays. How the company navigates these obstacles will become clearer in the coming quarters.
