Apple(US:AAPL) Sou Hu Cai Jing·2025-05-02 16:29Core Insights - Apple reported Q2 FY2025 earnings with total revenue of $95.36 billion, a 5% year-over-year increase, and net profit of $24.78 billion, also up 5% [2] - iPhone revenue reached $46.84 billion, slightly above last year's $45.96 billion, exceeding market expectations, while revenue from Greater China declined by 2% to $16.00 billion [2] - In Q1 2025, Apple achieved a 19% market share in the global smartphone market, surpassing Samsung's 18%, primarily due to the iPhone 16 series and the iPhone 16e launch [2] Financial Performance - Total revenue for Q2 FY2025 was $95.36 billion, with a net profit of $24.78 billion, both reflecting a 5% increase year-over-year [2] - iPhone revenue was $46.84 billion, compared to $45.96 billion in the same quarter last year, indicating a stable performance [2] Market Challenges - In China, Apple's performance is declining, with a 9% year-over-year drop in shipments to 9.8 million units, resulting in a market share decrease to 13.7%, ranking fifth behind Xiaomi, Huawei, OPPO, and vivo [4] - The company faces pressure from local brands benefiting from government subsidies and competitive pricing, which could further erode Apple's market share in China [8] Tariff Implications - CEO Tim Cook indicated that if the U.S. maintains high tariffs, Apple may need to adjust global pricing strategies, potentially increasing iPhone prices in North America by 24% [6] - Apple has expedited supply chain adjustments, planning to source most iPhones sold in the U.S. from India and gradually shift production of iPads, Macs, Apple Watches, and AirPods to Vietnam [6] Future Outlook - The upcoming iPhone 17 series launch in four months will be critical for Apple to maintain pricing stability amid tariff pressures [8] - The company's ability to innovate or adjust pricing strategies will be essential to counteract the challenges posed by local competitors and tariff policies [8]