Apple Q1 Earnings Poised to Beat as Tariffs Offset China Woes

Apple is expected to surpass Wall Street’s Q1 2025 EPS estimates of $2.35–$2.36 (actuals TBD post-announcement) despite iPhone sales missing projections at $69.1B vs. $71B expected. Analysts suggest potential upside from Trump-era tariff adjustments, which may have bolstered margins on U.S. sales, countering China’s 8% YoY revenue decline ($18.5B vs. $21.5B expected).

 

Key drivers:

 

Services growth: $26.3B revenue, matching expectations, as warranties and Apple TV+ offset hardware softness.

 

AI push: Early Apple Intelligence updates aim to revive iPhone 16 demand, though impact remains limited in China due to delayed rollout.

 

Mac/iPad refresh: Upcoming launches could signal stronger guidance for Q2.

 

While Loop Capital and Jefferies flagged iPhone weakness, tariff-related pricing strategies and a weaker yuan may have provided unexpected tailwinds.

 

Sources: CNBC, Quartz, Yahoo Finance