Apple (AAPL) will announce its fiscal second-quarter earnings after the market closes on Thursday. Investors are eager to learn how changing trade policies might impact the company.
Bank of America analysts have maintained a ‘buy’ recommendation for Apple stock but lowered the price target from $250 to $240 due to economic uncertainty. They believe Apple could see short-term growth because of tariff-related demand, but are cautious about potential drops in consumer demand due to economic concerns.
Analysts worry about difficulties stemming from trade issues with China, where about 90% of Apple’s products are made. Although President Trump has hinted that tariffs on Chinese goods may decrease, they are not expected to be removed completely. Apple plans to move all iPhone production for the U.S. market to India by the end of 2026 to reduce these risks.
Of the 15 analysts tracking Apple, nine recommend a ‘buy’ or similar rating, four suggest a ‘hold,’ and two advise a ‘sell.’ The average price target is just below $235, suggesting a possible increase of 13% from Monday’s intraday price of around $208. Since the beginning of the year, Apple shares have dropped by 17%.
Analysts predict Apple will earn $94.41 billion in revenue for the second quarter, representing a 4% increase from the same quarter last year. Earnings per share are expected to be $1.62, up from $1.53 last year.
This week is important for major tech companies like Apple, Microsoft, and Meta as they report their earnings. Alphabet’s recent report, which boosted Google’s stock, may provide hints about what investors can expect.
Daniel Ives from Wedbush pointed out that uncertainty around tariffs is a serious concern for the tech industry. He mentioned that chip makers and Apple are facing serious challenges due to the trade conflict with China.
Apple’s stock will be closely watched when it shares its second-quarter results. Investors are keen to hear about the company’s guidance for the next quarter, considering how tariffs and potential price increases might have impacted consumer demand.
Apple expects to see low to mid-single-digit revenue growth for the current March quarter (fiscal Q2 2025) compared to last year. In the Services segment, a low double-digit growth rate is anticipated. The consensus estimate for fiscal second-quarter revenue is $93.56 billion, up 3.09% from last year. Analysts expect earnings to be $1.60 per share, a 4.58% rise from the previous year.
Apple heavily depends on iPhone sales for revenue. In the first quarter of fiscal 2025, iPhone sales fell 0.8% year over year to $69.14 billion. This decline is due to growing competition in China from companies like Huawei and Xiaomi.