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

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

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.

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.

Apple's earnings will be a key update for investors looking for answers regarding the impact of tariffs, China competition, and progress on AI.

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

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

Apple shares fell more than 4 percent in early trading Friday as investors weighed an outlook for the iPhone maker that’s clouded by tariffs. The company’s fiscal second-quarter results came in ahead of analyst estimates, with sales rising 5 percent to $95.4 billion, and diluted earnings per share jumping 8 percent to $1.65.

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