Apple recently announced its Q2 financial results for FY2025, reporting a revenue of $95.4 billion, which represents a 5% increase from the same period last year. CEO Tim Cook revealed that due to the tariff policies of the Trump administration, the company expects an additional cost increase of $900 million in the upcoming quarter. He also indicated that most iPhone models sold in the U.S. will be produced in India, while most imported iPads and Macs will be manufactured in Vietnam to mitigate the impacts of the tariffs.

Nevertheless, Apple confirmed that China will remain the largest production assembly region for Apple products not sold in the U.S. market; however, Tim Cook did not clarify if high-end iPhone models would still be assembled in China. Prior market analysis suggests that the new iPhone may still be assembled in China, which could lead to price increases for the new iPhone models set to launch in the U.S. this fall. Other markets may also experience price adjustments due to tariff impacts. Cook stated that in the coming market developments, it would become increasingly difficult to predict the impacts of tariff policies, and thus, they continue to monitor any changes to related policies.

Furthermore, Cook stated that the iPhone models have already adopted a significant number of chips produced in the U.S., with plans to procure as many as 19 billion domestically produced chips within this year. In terms of sales performance across different products, iPhone generated $46.84 billion in revenue last quarter, a growth of 1.9% year-over-year; Mac revenue amounted to $7.95 billion, up 6.7% year-over-year; and iPad sales revenue reached $6.4 billion, showing a 15.2% increase year-over-year. Revenue from wearables and home devices, including Apple Watch, declined by 5%. Service revenue reached $26.65 billion, growing by 11.6%, and now accounts for 28% of Apple’s total revenue compared to only 2.7% from hardware revenue.