On May 1, 2025, Apple reported its latest billion-dollar revenue. However, this time investors approached it cautiously instead of rejoicing – behind the strong financial results lie a number of serious threats: slowing growth in China, tariff pressure, delays in artificial intelligence, and legal pressure.
Strong performance, cautious market
In Q2 2025, Apple reported $95.4 billion in revenue, up 5% from last year. Net income reached $24.78 billion, and earnings per share (EPS) came in at $1.65, beating Wall Street expectations.
The iPhone remains Apple’s cash machine, bringing in $46.84 billion in sales — nearly half of all revenue. Services (including iCloud, Apple Music, and the App Store) hit a new record at $26.64 billion, confirming that Apple’s strategy to grow beyond hardware is working. Mac and iPad sales, however, were more modest, at $7.95 billion and $6.4 billion, respectively.
So why did Apple’s stock fall more than 4% after hours?
The China problem
One word: China. In Greater China, an important region for Apple, revenue decreased by 2.3% . This decline is alarming, especially at a time when Chinese competitors like Huawei and Xiaomi are expanding their market share. As geopolitical tensions intensify, Apple’s presence in China may become a vulnerability rather than a strength.
Tim Cook acknowledged the pressure in the region, but emphasized that Apple still sees opportunities in China. However, investors are concerned about the geopolitical situation and tariffs.
$900 million in tariffs – and a new supply chain strategy
Tim Cook confirmed that the new U.S. customs duties could cost Apple an additional $900 million in the next quarter. This is a major blow – and in response, Apple is accelerating plans to relocate production to other countries.
- Now, the majority of iPhones sold in the US are manufactured in India.
- Macs and iPads are assembled in Vietnam.
This decision was made not only to reduce costs but also to manage strategic risks. For a long time, Apple was criticized for its excessive reliance on Chinese factories. Now the company is trying to make its global production more balanced. However, such changes require time and bring their own set of challenges.
AI delays and Investor doubts
While Google and Microsoft are actively integrating generative AI technologies into their products, Apple is moving slowly in this direction. Apple’s long-awaited AI features – in particular, the improved Siri – have not yet been presented to the public. Tim Cook promised at the June WWDC event that more AI updates would be introduced, but these delays have not gone unnoticed by investors. Can Apple compete in this rapidly changing field?
Legal Trouble: App Store Under Fire
Apple’s concerns have been compounded: the company is facing legal issues regarding its App Store policy. The judge has referred this case for investigation with the possibility of turning it into a criminal case – if regulators examine it more closely, it could become a serious problem for Apple. The company’s dominance over its ecosystem has long been under criticism – and this could be the beginning of a broader movement aimed at limiting control over developers and digital services.
Conclusion: profits are strong, but the future is complex
Apple’s Q2 performance shows a company still making massive profits — but also navigating a new era of complexity. The numbers are strong, but the future is less certain.
- iPhone is still dominant, but growth is slowing down.
- China is a risk, not just a market.
- Tariffs are real, and supply chains are shifting fast.
- AI is a gap, and Apple is late to the party.
- Regulators are circling, and lawsuits are gaining momentum.
Apple has the cash, talent, and scale to respond — but this quarter was a clear reminder: even the biggest tech giant isn’t untouchable.
Prepared by Navruzakhon Burieva
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