Apple Inc.'s sales from China fell more than expected in the latest quarter, which made iPhone Maker's results mask solid results.
In the second quarter, Chinese revenue fell 2.3% to $16 billion, the company said in a statement Thursday, which continued into March. Analysts estimate $16.83 billion.
Overall sales rose 5% to $95.4 billion, with an early average estimated at $94.6 billion. Apple expects percentage growth to be low to mid-digit.
The results are seen as an ominous signal for a company that faces greater challenges in the coming months. Apple's China-centric production makes it particularly vulnerable to tariffs announced by the Trump administration. It has also been working to retain customers in Asian countries, one of its largest markets outside of the United States.
After the results were released, Apple shares fell by about 2% in late trading. They have been down 15% this year by the end of Thursday.
The iPhone maker also announced plans to increase its share buyback program by $100 billion and raise its quarterly dividend by 4% to 26 cents per share.
The company has been fighting for a series of challenges – beyond the looming tariffs. Apple is catching up with artificial intelligence, forcing it to reshuffle in recent weeks. It is also under increasing regulatory pressure from the EU and its home country. On Wednesday, a federal judge asked the company to open its app store to third-party payment methods and to stop commissions on external purchases.
Tariffs remain one of the biggest question marks. While Apple may steer clear of the 145% Chinese tax originally proposed by the government, new tariffs on electronics are still being launched. The turmoil threatens to disrupt the company's supply chain and potentially forces it to raise prices. Apple is already looking to make more American iPhones in India rather than in China.
But the Cupertino, California-based company has taken a boost in the current quarter’s tariff threat: Customers flooded Apple retail stores to buy new iPhones and other products out of fear of an upcoming price increase.
This article was generated from the Automation News Agency feed without the text being modified.
