Apple published its profits on Thursday in the second quarter, reporting mixed results which sent actions slippery more than 3% in trade after working hours. In his call to analysts and investors, the technology giant addressed subjects such as prices, consumer behavior and the legal challenges that the company is confronted.
Here are six points to remember from the call for results.
$ 900 million possible on the price
Apple has discussed the potential impact that the imminent prices imposed by the administration of President Donald Trump will have on its activities, providing that the levies will add $ 900 million in the June quarter.
“This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit from the June quarter,” said CEO Tim Cook during the call. “For our part, we will manage the company as we have always had: with thoughtful and deliberate decisions, emphasizing long -term investment and in dedication to innovation and the possibilities it creates.”
While Cook was somewhat vague about the estimate, Peter Kafka of Business Insider wrote that Cook seemed to suggest that the number of $ 900 million will hold up if the current prices remain in place, if the rates related to electronics remain on a break or if they reddemnate, and if the apple can send most of the products it plans to sell in the United States.
Cook said that for the June quarter, “most of our exposure to the tari ff concerning the tari ff in February on the ieepa at the rate of 20%, which applies to imports in the United States for products that have China as a country of origin.”
Cook did not respond if Apple plans to eat these costs or transmit them to consumers.
Buyers did not rush to obtain iPhones in the middle of the price conversation
In response to a question from an analyst by Morgan Stanley, Cook said that the company had seen no “obvious evidence” that customers were sufficiently frightened by the discourse on prices to go out and make follies on a new iPhone for the moment – or any Apple product, moreover.
“If you look at our chain inventory, from the beginning of the quarter to the end of the quarter, the inventory of the unit channels was similar, not only for the iPhone, but for the balance of our products,” said Cook.
Cook added that Apple tried to download part of its purchases on the front to bypass the worst effects of the prices, but demand remained relatively flat.
Siri's latest features are delayed – again
Apple has again rejected the launch of Siri more personalized features, such as increased awareness of the screen and a better contextual memory of your previous communications with friends and family, which were previously announced as part of Apple Intelligence.
These features, originally provided by iOS 18, were delayed once already in March and have no new launch date.
“Regarding the most personal Siri features we have announced, we need more time to finish our work on these features so that they meet our high quality bar,” said Cook. “We are progressing and we are impatient to put these features between customers.”
Apple always fights its battle for epic games
In a Wednesday file released just before Apple's profits in the second quarter Antitrust case of epic games, Writing that they violated an injunction of 2021.
“Yesterday we are in disagreement,” said Cook during the Thursday call. “We have respected the court order and we will appeal.”
Rogers, in his ordinance, wrote that an executive “was pure and simple” in the court under oath at the time when Apple decided to impose commission fees of 27% on transactions facilitated via its app store.
The court referred the case to the United States prosecutor for the North District of California “to investigate the question of whether a criminal contempt is appropriate”.
Cook added that the company was closely monitored the situation but had nothing else to add, except that “there are risks associated” with the reference of the court for a more in -depth investigation and “the result is not clear”.
Apple plans to make in the United States
Cook has opened the call for profits by highlighting its plans to stimulate manufacturing in the United States, reminding investors a recently announced internal investment of $ 500 billion in the next four years.
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“We are going to extend our teams and our facilities in several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington,” said Cook. “And we are going to open a new factory for the manufacture of advanced servers in Texas.”
The prices for electronics such as smartphones, computers and chips were interrupted on April 11, but market analysts told BI that there was always a risk that these supplements could return at any time. The majority of Apple products are still produced in China.
Apple moves manufacturing in India
Despite the commitment to invest in American manufacturing, Cook says that it expects the “majority” of iPhones sold in the United States during the June quarter “to have India as a country of origin.
Meanwhile, Cook said almost all other products in the company entering the United States will come from Vietnam. However, he added that China would remain the main manufacturing center for Apple products sold to the rest of the world.
Analysts have warned This manufacturing in India would cost Apple from 5% to 8% more than in China, which would potentially tighten the margins and add logistical obstacles.
India and Vietnam each faced 26% and 46% in additional prices, respectively, before the 90 -day Trump break on April 9. These prices could return if no offer is concluded when the break ends.
