Apple’s second quarter results exceeded Wall Street’s expectations for both revenue and non-GAAP profit, yet the market reacted negatively. Management attributed the quarter’s performance to strong global demand for iPhone 16, Mac upgrades, and double-digit Services growth. CEO Tim Cook emphasized that “growth accelerated in the vast majority of markets we track,” driven by robust upgraders in key products. However, management cited higher tariff-related costs and noted that a portion of demand may have been pulled forward into the quarter by tariff discussions.

Is now the time to buy AAPL? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Apple’s Q2 Earnings Call

• Michael Ng (Goldman Sachs) asked about the drivers behind record upgrade rates. CEO Tim Cook attributed upgrades to product strength and noted about one point of growth was due to tariff-related demand pull-forward.
• Erik Woodring (Morgan Stanley) sought clarity on Services growth and iPhone demand in China. Cook said Services growth reflected changing consumer behavior, while China’s results benefited from local subsidies and strong Mac and iPhone upgraders.
• Amit Daryanani (Evercore) asked how Apple would offset rising tariffs. Cook explained ongoing supply chain optimization and large-scale U.S. investment as primary mitigation tactics.
• David Vogt (UBS) questioned the sustainability of iPhone demand and supply chain strategy. CFO Kevan Parekh responded that demand was driven by product strength, and Cook detailed production diversification across the U.S., India, Vietnam, and China.
• Samik Chatterjee (JPMorgan) inquired about the nature of demand pull-forward. Cook clarified it was mainly seen in iPhone and Mac sales in the U.S., concentrated at the start of the quarter.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the pace and breadth of AI feature adoption across Apple’s devices, (2) how Apple manages rising tariff-related costs and further localizes its supply chain, and (3) whether Services can sustain double-digit growth amid evolving regulatory and partnership risks. Progress in U.S. manufacturing investments and new product launches will also be key milestones.

Apple currently trades at $229.65, up from $207.61 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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