Sorry, but Tariffs Are the Least of Apple's Problems Right Now
Dig deeper, and you might find more serious, longer-lasting worries than sky-high import costs.
Apple (NASDAQ: AAPL) shares fell following last week's release of the numbers for its fiscal second quarter (which ended March 29) -- and understandably so. Although the iPhone maker topped analysts' revenue and earnings estimates, CEO Tim Cook confirmed that newly imposed import tariffs will take their toll. In the current quarter alone, they'll cost the company on the order of $900 million: nearly 4% of last quarter's reported net income of $24.8 billion.
Tariffs are arguably the least of Apple's problems right now, though, if you dig deeper into its historical results. A lack of meaningful growth from its flagship profit center and continued struggles with artificial intelligence (AI) are far greater challenges, and could linger a lot longer than the impact of tariffs.
Here's why those are legitimate concerns for shareholders.
