Apple(US:AAPL) The Guardian·2025-05-01 19:00Core Viewpoint - Investors are closely monitoring Apple as it prepares to report its second-quarter financial results, amid concerns over tariffs and supply chain complexities that have impacted its stock performance [1][2]. Financial Performance Expectations - Analysts predict a positive quarter for Apple, with an average revenue estimate of $94.56 billion, reflecting a 4.2% increase year-over-year, and earnings of $1.62 per share, up 5.8% [2]. Tariff Impact and Manufacturing Concerns - Apple's heavy reliance on Chinese manufacturing for its products raises concerns, especially after President Trump imposed tariffs that could reach as high as 245% [3]. - Following discussions between Apple's CEO Tim Cook and White House officials, Trump announced a temporary exemption for consumer electronics from tariffs, which led to a 7% rise in Apple's stock [4]. - However, the longevity of this exemption is uncertain, with officials indicating it may not be permanent [4]. Manufacturing Shifts and Cost Implications - Trump has expressed a desire for increased manufacturing in the US, which could lead to significant cost increases for Apple, potentially driving prices up by 30% if production is moved domestically [5]. - Analysts suggest that Apple may continue to shift some manufacturing to India, where tariffs are lower at 10% [5]. Inventory Management and Sales Concerns - In response to potential price hikes, Apple airlifted approximately $2 billion worth of iPhones from India to the US to bolster inventory [6]. - There are concerns regarding declining iPhone sales in China, with an 11.1% drop reported in the first quarter, which missed Wall Street's expectations [6]. Consumer Behavior and Market Dynamics - In the short term, the tariff situation may lead to panic-buying of Apple products, although the long-term impact on consumer demand and price absorption remains uncertain [7].