apple The second meeting earnings of Thursday's second meeting beat Wall Street expectations, but the highlights of the service department the company watched compared to estimates.
iPhone Maker shares fell as much as 4% in expansion trading.
Here is Apple's consensus estimate and consensus estimate for the quarter ended in March:
Cook provided Apple's first comment on the impact of tariffs on its business on earnings calls with analysts, saying the company saw "limited impact" in the March quarter as it was able to optimize its supply chain.
Apple expects financial director Kevan Parekh to say on the phone that overall revenue for the current quarter will grow “low to intermediate numbers” every year. Apple reported $85.78 billion in sales in the June quarter last year.
The company also expects that the midpoint gross margin will account for 46% in the midpoint, considering tariff charges. Analysts are looking for guidance for the third quarter, with earnings per share of $1.48 and sales of $89.45 billion.
Cook said during the call that Apple expects tariffs to increase costs by $900 million in the quarter, assuming there are no new tariffs or other significant changes. However, he added that it is difficult to predict "very difficult" outside of June because I'm not sure what will happen to the tariffs. ”
“We will manage the company in a thoughtful and intentional way of making decisions, focusing on long-term investments and committed to innovation and the possibilities they create,” Cook said during the call. “We remain confident as we look forward to it.”
Cook told CNBC that Apple has supplied about half of the iPhones to the United States from India, as well as most American products from Vietnam, where tariffs are lower than China. Cook said Apple still uses its "big majority" to other countries in China.
Cook said the iPhone used many domestically made chips, adding that Apple bought 19 billion chips from the U.S. this year
“With an iPhone, you really have to step down and look at the various parts and where they come from,” he said.
Apple said the board authorized $100 billion in stock buybacks this quarter, down from the $110 billion mandate last year. Apple also said it would pay a dividend of 26 cents a share, up 4%.
"We continue to plan to increase dividends," Cook said.
The company reported net income of $1.65 per share was $24.78 billion in the quarter, compared with $23.64 billion in the same period last year, or $1.53 a share.
The company's most important product line, iPhone, recorded sales of $46.8 billion in the quarter. Each year, sales of the entire product range are less than 2%.
Apple's profitable services division includes iCloud subscriptions, services such as Apple Music and Apple TV+, revenue from warranty and search license transactions, such as agreements with Google.
Cook's revenue grew to $26.65 billion in the quarter, up 11.65% per year. However, service revenue was slightly under expectations of street box office, with Apple's service rising 14.2% in the March quarter last year.
Apple hardware usually performs well this quarter.
MAC sales grew nearly 7% to $8 billion, while iPad sales grew 15% annually to $6.4 billion. Apple launched new mid-priced iPad Air and MacBook Air Models in March.
But Apple's wearables division, including Apple Watch, AirPods and accessories sales, fell 5%, compared with revenue of $7.52 billion last year. Cook attributes the decline to the launch of Vision Pro headphones a year ago.
Sales in China, including Taiwan and Hong Kong, fell year-on-year to US$16 billion. China's sales accelerated quarterly, and if it weren't for foreign exchange rates, Apple sales in the region would be flat.
On the other hand, Apple's largest market sales in the Americas increased consumer demand ahead of schedule, up nearly 8%. Cook told CNBC's Steve Kovach that Apple saw no evidence of a "forward" order due to tariffs.
"We don't think there is no substantial forward due to tariffs in the March quarter," Cook said. "There is no obvious evidence."
In the quarter, Apple delayed some of the AI features announced last summer to the "coming" and some analysts say it could reduce the appeal of Apple's latest iPhone.
This includes the features of Apple's Siri AI voice assistant, the focus of the company's cancellation of ads since. “We need more time to do the work of these features so that they fit into our high-quality bars,” Cook said in a revenue call with analysts.
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