Apple(US:AAPL) Huan Qiu Wang·2025-05-02 02:02Core Insights - Apple's Q2 earnings exceeded Wall Street expectations, but the performance of its services segment fell short [1][4] - The company's stock price dropped by 4% in after-hours trading following the earnings report [1] Financial Performance - Apple's net income for the quarter was $24.78 billion, with earnings per share of $1.65, compared to $23.64 billion and $1.53 per share in the same quarter last year [5] - Total revenue for the iPhone segment reached $46.8 billion, exceeding expectations, while overall product line sales grew slightly under 2% year-over-year [5] - The services segment revenue increased to $26.65 billion, a year-over-year growth of 11.65%, but was below StreetAccount's expectations [5] Product Performance - Mac sales grew nearly 7% year-over-year, reaching nearly $8 billion, while iPad sales increased by 15% to $6.4 billion [6] - The wearables segment, including Apple Watch and AirPods, saw a revenue decline of 5% year-over-year, totaling $7.52 billion [6] - Sales in Greater China experienced a slight year-over-year decline, totaling $16 billion, although there was a quarter-over-quarter increase [6] Supply Chain and Costs - CEO Tim Cook noted that the impact of tariffs on Apple's business was limited due to supply chain optimization, with an expected cost increase of $900 million from tariffs in the current quarter [4] - Apple plans to purchase 19 billion chips from U.S. suppliers this year, emphasizing the domestic production of components for the iPhone [5] Future Outlook - The company anticipates revenue growth in the current quarter to be in the "low to mid-single digits" year-over-year, with a projected gross margin of 46% after accounting for tariff costs [4] - Some AI features announced last summer have been postponed to next year, which may affect the appeal of the latest iPhone models [7]