Apple Renews Fears Over Tariff, China With Wobbly Report

Apple Inc.'s much-awaited quarterly earnings report failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China.

- Bloomberg

The company's shares declined 3.7% in New York on Friday after second-quarter results included worse-than-expected sales in China. The iPhone maker also warned that tariffs will increase costs this quarter, a sign that geopolitical tensions are taking a growing toll on the business.

Apple expects $900 million in higher costs from tariffs in the current period, Chief Executive Officer Tim Cook said Thursday during a conference call. Revenue will increase by a percentage in the low-to-mid-single digits in the quarter, compared with a 5% average analyst estimate. The company didn't offer any guidance on the impact of tariffs beyond the current period.

"We will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term," Cook said during the call. Sales from China, meanwhile, fell 2.3% to $16 billion in the second quarter, which ended March 29. Analysts had predicted $16.83 billion. That shortfall is an ominous sign for what was once a growth market.