Apple stock rose after the U.S. and China agreed to a cooling-off period on tariffs. But services business challenges remain an overhang.

Apple (NASDAQ: AAPL) held its fiscal 2025 second-quarter earnings call after the market closed on Thursday. Instead, both Apple's management and analysts on the earnings call were fixated on tariffs.

Wireless providers such as AT&T and Verizon have indicated they are unlikely to absorb much of the tariff load on smartphone pricing.

President Donald Trump's plan for tariffs on imports has guided the stock market's direction over the past few weeks. The initial plan, with double-digit tariffs for countries around the world, shook the market, even pushing the Nasdaq Composite ( ^IXIC 1.61%) to fall into a bear market.

Apple faces slowing hardware growth, steep tariffs, and excessive capital returns that threaten earnings quality. Find out why AAPL stock is a sell.

Apple's quarterly sales and profit for the second quarter narrowly beat out Wall Street expectations as iPhone sales were strong in the face of impending tariffs

Cook noted that Apple is now sourcing many of the iPhones slated for sale in the U.S. from India, and most of its other products headed for the U.S. are now coming from Vietnam. Apple reshuffled its production after President Trump slapped a cumulative 145% tariff on many imports from China.

Cook said Apple expects a $900 million cost impact in the June quarter due to tariffs. Cook stated that he expects most iPhones sold in the U.S. will soon originate from India. Don’t miss this ...

Apple shares drop as Tim Cook warns of $900M in added costs from tariffs; production shifts to India and Vietnam to cushion US exposure.

U.S. equities soared at midday following this weekend's agreement between the U.S. and China to lower tariffs for 90 days.