Apple Faces $900M Tariff Hit, Delays in AI

Apple reported quarterly revenue of $95.4 billion, a 5% year-over-year increase, and an 8% rise in earnings per share to $1.65, driven by strong iPhone and services sales. The company warned that escalating U.S. tariffs could add $900 million to costs in the June 2025 quarter, leading to a post-earnings stock decline amid investor concerns. CEO Tim Cook said Apple is shifting most U.S.-bound iPhone production to India and sourcing other devices from Vietnam, though most international products remain made in China. Apple faces additional pressure from a 2.3% revenue drop in China and growing competition from local brands. Delays in advanced AI features, including a revamped Siri now expected in 2026, have heightened fears Apple could lag behind rivals like Meta and Microsoft. Despite these challenges, Apple’s operational efficiency and strong ecosystem offer some resilience as it navigates supply chain, regulatory, and technological risks.