6 key takeaways from Apple's second-quarter earnings call

Core Insights - Apple reported mixed Q2 earnings, leading to a more than 3% decline in after-hours trading, with discussions on tariffs, consumer behavior, and legal challenges [1] Tariff Impact - Apple anticipates a potential $900 million increase in costs due to looming tariffs in the June quarter, primarily related to a 20$900 million estimate is contingent on current tariff conditions and Apple's ability to source products from outside China [3] Consumer Behavior - There is no significant evidence that consumers are rushing to purchase iPhones in response to tariff discussions, with channel inventory remaining stable throughout the quarter [5][6] Product Development Delays - The launch of new personalized features for Siri has been delayed again, with no new launch date provided, as the company aims to meet its quality standards [7] Legal Challenges - Apple is currently involved in a legal battle with Epic Games, facing criticism from a judge for alleged violations of a 2021 injunction, with the company planning to appeal the ruling [8][9][10] Manufacturing Strategy - Apple plans to invest $500 billion in US manufacturing over the next four years, expanding operations in several states and opening a new factory in Texas [10][13] - Despite the US investment, the majority of iPhones sold in the US during the June quarter are expected to originate from India, while most other products will come from Vietnam [14] - Manufacturing in India is projected to cost Apple 5% to 8% more than in China, potentially impacting profit margins [15]