CEO Tim Cook anticipates a disastrous second quarter due to tariffs.
The first quarter
Apple has unveiled its results for the first quarter of 2025, with iPhone sales just reaching the forecast $46 billion.
Forecasts
Apple’s sales generated over $95 billion in revenues in the first quarter of 2025, slightly exceeding forecasts of just over $94 billion.
Tensions
However, some indicators are already revealing tensions, notably a billion-dollar drop in sales in China, below projections.
Below expectations
According to Forbes, Apple’s first-quarter sales in the greater China region, currently at the center of a major tariff dispute with the United States, came in below expectations.
16 billion
While projections were for $17 billion, sales were only $16 billion.
The Trump administration
CEO Tim Cook predicts a difficult second quarter due to the tariffs introduced by the Trump administration, which the company believes would result in additional costs estimated at $900 million.
Trade wars with China
Let’s not forget that if the trade wars with China were to drag on, Apple would inevitably suffer the consequences, as China accounted for 17% of its revenues in 2024. What’s more, beyond the impact on sales, the majority of iPhones are assembled in this country, accentuating the company’s vulnerability. Of course, any increase in costs would inevitably be passed on to Apple’s loyal customers.