Apple's Q2 service revenue slightly missed expectations, and the stock price fell over 2% in after-hours trading

According to the Zhitong Finance APP, after the close of the U.S. stock market on Thursday, Apple (AAPL.US) announced its financial report for the second quarter of fiscal year 2025 (ending March 31), with both revenue and net profit exceeding market expectations. However, the growth of its key services business showed signs of weakness, raising market concerns and causing the company's stock price to drop more than 2% in after-hours trading. The financial report showed that Apple's earnings per share for the quarter were $1.65, higher than the market expectation of $1.63, with revenue reaching $95.4 billion, also surpassing analysts' estimate of $94.66 billion. By product line, the iPhone remains the company's most important source of revenue, with quarterly revenue of $46.84 billion, slightly above the expected $45.84 billion, representing a year-on-year growth of nearly 2%. The Mac and iPad also performed well, with the former generating $7.95 billion in revenue, a nearly 7% year-on-year increase, while the latter benefited from the launch of the new iPad Air, growing 15% year-on-year to $6.4 billion. The wearables and accessories business showed weak performance, with revenue from this segment, including Apple Watch and AirPods, at $7.52 billion, a year-on-year decline of 5%. The most concerning aspect for the market was that service revenue was slightly below expectations at $26.65 billion. Although it grew 11.65% year-on-year, it was lower than the 14.2% growth rate of the same period last year and below the market expectation of $26.7 billion. This business includes iCloud, Apple Music, Apple TV+, warranty services, and licensing revenue from the Google search engine, and is Apple's highest-margin segment. The slowdown in its growth has raised investor concerns about a growth ceiling. Apple CEO Tim Cook mentioned in a media interview that the company is actively adjusting its global supply chain to adapt to the changing trade environment. Currently, more than half of the iPhones sold in the U.S. market are produced in India, while most of the Mac, iPad, AirPods, and Apple Watch products come from Vietnam. Cook also pointed out that this year the company will source $19 billion worth of chips from domestic suppliers in the U.S., emphasizing that the diversified sources of internal components for the iPhone help enhance supply chain resilience. In terms of regional markets, revenue from the Greater China region was $16 billion, slightly down from last year. Cook noted that excluding the impact of exchange rates, revenue in the region was basically flat, with sales showing a trend of accelerating quarter by quarter. The Americas market performed even stronger, with a year-on-year growth of nearly 8%. Although there were concerns that consumers might place orders in advance due to tariff expectations, Cook stated that there was no significant evidence of such "pre-purchase" phenomena. To boost shareholder confidence, Apple's board of directors announced the approval of a stock repurchase plan of up to $100 billion, which, although lower than last year's $110 billion, still demonstrates the company's confidence in future cash flow. Additionally, the company raised its quarterly dividend by 4% to $0.26 per share and stated that it would continue to maintain its annual dividend growth policy