Apple Inc. has reported stronger-than-expected results for its fiscal second quarter, posting $95.36 billion in revenue and earnings of $1.65 per share, surpassing analyst expectations. iPhone sales were particularly robust at $46.84 billion, buoyed by strong demand for the mid-range iPhone 16e, which features Apple’s first custom modem chip and full AI capabilities.
Amid rising global trade tensions, Apple announced a significant shift in its manufacturing strategy. CEO Tim Cook confirmed that the majority of iPhones sold in the U.S. this quarter will be manufactured in India, while iPads, Macs, and Apple Watches will primarily come from Vietnam. This move aims to offset an anticipated $900 million increase in costs due to tariffs in the quarter ending in June.
Cook emphasized that while Apple saw limited tariff impact last quarter due to strategic inventory buildup, the evolving trade landscape presents ongoing risks. “We’ve learned that concentrating production in one location adds too much risk,” he noted.
Despite continued pressure in China — where sales fell to $16 billion, though slightly better than expected — Apple’s global iPhone base reached a new high in all regions. Services revenue hit $26.65 billion, while Mac and iPad sales exceeded estimates at $7.95 billion and $6.40 billion respectively.
The company also announced a 4% increase in its dividend and a $100 billion stock buyback authorization. However, analysts viewed the buyback as modest compared to previous years, suggesting a more cautious outlook.