---
title: "Apple (Minutes): $500 billion investment will leverage third-party resources"
description: "Apple (AAPL.O) Beijing time on the morning of May 2, 2025, released its fiscal year 2025 second-quarter earnings report (as of March 2025) after the U.S. market closed. Key points are as follows: Belo"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29305996.md"
published_at: "2025-05-02T05:24:45.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Apple (Minutes): $500 billion investment will leverage third-party resources

Apple (AAPL.O) released its Q2 2025 fiscal year earnings report (as of March 2025) after U.S. market close on May 2, 2025, Beijing time. Key highlights:

Below is the transcript of Apple's Q2 2025 earnings call. For earnings analysis, please visit [Apple: 'Lying Flat' Is Easy, Running Hard Is Tough](https://longportapp.cn/zh-CN/topics/29300819)

**I.**$Apple(AAPL.US) **Key Earnings Highlights:**

**II. Detailed Earnings Call Content**

**2.1 Management Presentation Highlights:**

**1\. Financial Performance Overview**

**Total Revenue:** Apple reported Q2 revenue of $95.4 billion, up 5% YoY, with ~2.5% negative FX impact.

**EPS:** EPS reached $1.65, up 8% YoY, a new historical high.

**Services Revenue:** Services revenue hit $26.6 billion, up 12% YoY, with double-digit growth across all geographies.

**Products Revenue:** Products revenue was $68.7 billion, up 3% YoY, driven by iPhone, iPad and Mac sales.

**Gross Margin:** Overall gross margin was 47.1% (products 35.9%, services 75.7%).

**Operating Expenses:** OpEx rose 6% YoY to $15.3 billion.

**Net Income & EPS:** Net income grew 5% YoY to $24.8 billion; diluted EPS rose 8% to $1.65.

**Operating Cash Flow:** OCF was $24 billion.

**2\. Product Segment Performance**

**iPhone:** Revenue reached $46.8 billion (+2% YoY). The quarter saw iPhone 16e launch with Apple's first in-house C1 modem. Active installed base hit record highs globally.

**Mac:** Revenue grew 7% YoY to $7.9 billion, driven by new MacBook Air/Pro/Mac mini. Installed base reached all-time high.

**iPad:** Revenue jumped 15% YoY to $6.4 billion, fueled by M3-powered iPad Air. Over 50% buyers were first-time iPad users.

**Wearables/Home/Accessories:** Revenue fell 5% to $7.5 billion. Apple Watch installed base hit record high.

**Services:** Revenue grew 12% YoY to $26.6 billion. Paid subscriptions exceeded 1 billion. Apple TV+ viewership hit records with shows like "Severance". iOS 18.4 expanded "Apple Intelligence" to more languages.

**3\. Tariff Impact & U.S. Investment**

**Tariffs:** Limited impact this quarter due to supply chain optimization. Expect $900 million cost impact next quarter if current tariffs remain.

**U.S. Investment:** Announced $500 billion 4-year investment plan, including advanced server factory in Texas.

**4\. Financial Outlook & Capital Return**

**Q3 Guidance:** Expect low-to-mid single-digit revenue growth (0-5% YoY). Gross margin 45.5%-46.5% ($900M tariff impact included).

**Capital Return:** Returned $29 billion to shareholders ($3.8B dividends + $25B buybacks). Approved new $100B buyback program. Raised dividend 4% to $0.26/share.

**2.2 Q&A Highlights**

**Q:** India-produced iPhone share in U.S. sales?  
**A:** Majority of U.S. iPhones next quarter will originate from India; most iPads/Macs/Watches from Vietnam.

**Q:** China performance?  
**A:** Mainland China revenue down 2% YoY (flat ex-FX), showing improvement from Q1's 11% decline.

**Q:** AI strategy?  
**A:** Deployed LLM on iPhone 16 with on-device/cloud hybrid approach. Excited about roadmap progress.

**Q:** New Siri delay?  
**A:** Need more time to meet quality standards for personalized Siri, though many AI features already shipped.

**Q:** Legal cases?  
**A:** Disagree with Epic ruling (will appeal). Monitoring Google antitrust case closely.

Risk Disclosure: [Dolphin Research Disclaimer](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

### Related Stocks

- [AAPL.US - Apple](https://longbridge.com/en/quote/AAPL.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.