Just moving out of China won't be enough for Apple to satisfy the president's demands for U.S. production, Ben Rose writes in a guest commentary.
Apple's Services revenue hit $26.6B in Q2-FY25, up 12% YoY, with a 75.7% gross margin, driving profit expansion. Over one billion paid subscriptions support recurring revenue growth, reducing reliance on slowing iPhone sales and hardware cycles. iPhone revenue grew just 2% YoY, while wearables declined 5%, reflecting hardware saturation and competitive pressure, especially in China.
Apple Inc. faces a potential 25% tariff on iPhones made outside the U.S., directly threatened by President Trump. The company's shift to India and Vietnam was meant to reduce China risk, but it's now clashing with U.S. political pressure. Building iPhones in the U.S. is economically unviable in the short term, and absorbing tariffs or raising prices would severely hurt margins or demand.
CNBC's Eamon Javers reports on the latest conversations from inside the Oval Office.
Daniel Newman, The Futurum Group CEO, and James Cakmak, Clockwise Capital CIO, join 'Power Lunch' to discuss Trump's tariff threats on Apple, if the market reaction is overdone and much more.
U.S. equities slumped at midday after President Donald Trump threatened tariffs on Apple (AAPL) iPhones and European Union (EU) products. The Nasdaq slipped 1%, and the Dow Jones Industrial Average and S&P 500 were down as well.
U.S. Stock Futures Plunge on Trump Tariff Concerns.
President Donald Trump threatened to raise tariffs on Apple and the European Union in Friday (May 23) posts on Truth Social.
The president is putting pressure on the world's biggest tech company to move manufacturing stateside.
Apple Inc (NASDAQ:AAPL) stock is down 2.3% to trade at $196.80 at last glance, after President Donald Trump threatened to slap 25% tariffs on iPhones made outside of the U.S. Trump also noted he wants the tech behemoth to produce the devices nationally, which would raise prices substantially.
The once-solid relationship between President Trump and Apple CEO Tim Cook is breaking down over the idea of making iPhones in the U.S. Trump threatened to slap a 25% tariff on iPhones made outside the U.S. in a social media post.
“I have long ago informed Tim Cook of Apple that I expected their iPhones that will be sold in the [U.S.] will be manufactured and built in the [U.S.], not India, or anyplace else,” Trump wrote, adding, “If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”