Apple Inc. released its Q2 earnings for fiscal year 2025 early Friday morning Taiwan time, surpassing market expectations for both revenue and profit. However, due to delays in AI functionality and disappointing service revenue, the stock plummeted by 3.78% in after-hours trading, settling at $205.25. According to the report, Apple posted earnings per share of $1.65, exceeding the expected $1.63, with total revenue reaching $95.36 billion, surpassing the $94.66 billion forecast. iPhone sales generated $46.84 billion, slightly above predictions, while service revenue of $26.65 billion fell short of expectations, disappointing investors.

CEO Tim Cook indicated that tariffs imposed by Trump’s administration will increase costs by approximately TWD 28.9 billion this quarter, potentially bringing gross margins down to between 45.5% and 46.5%, below the projected 46.58%. While production of iPhones has largely moved to India, and iPads and Macs are primarily being produced in Vietnam, reliance on Chinese manufacturing remains high, causing cost and quality control pressures.

Cook also confirmed that the expected release of Siri upgrades and generative AI capabilities, originally slated for this summer, will be pushed back to 2026, raising concerns among analysts about Apple’s competitiveness in the AI space.