Apple dropped earnings this week, and yes, I’m calling them “wobbly.” Again. Just like I did with Amazon. Look, it’s late, I’ve run out of synonyms, and frankly, “wobbly” fits. Because while Apple beat on the top line, there’s turbulence under the hood—and most of it centers on Services and the world’s most controversial checkout button: Apple Pay.
Let’s start with the upside. Apple pulled in $95.4 billion in revenue and $1.65 EPS, slightly ahead of expectations. Services revenue grew 11.65% year-over-year to $26.65 billion. On the surface, that’s a solid win. But dig a little deepe,r and you’ll see the glow fades fast. Services came in light compared to estimates, and that’s before the full body blow from Judge Yvonne Gonzalez Rogers hits the books.
You know that ruling, right? In case you missed it, Kirby did a mic drop of a piece about Apple’s platform tax. The court didn’t just tell Apple to knock it off—they called it a con, sent it to the feds, and basically threw the App Store’s entire monetization model into question. And now, that highly profitable division—formerly the company’s safety net—is looking a little shaky.
Meanwhile, Tim Cook spent the earnings call playing geopolitical dodgeball. Apple expects $900 million in added tariff costs this quarter alone, thanks to the never-ending U.S.–China saga. Cook admitted it’s “very difficult” to predict anything beyond June, which, for a company this size, is about as comforting as Siri forgetting your name. But to be fair, it’s hard to blame Apple for the macro mess. They didn’t pick this fight—they’re just trying to make iPhones without getting smacked by a 145% import tax.
To Cook’s credit, Apple’s making moves. Half of U.S.-bound iPhones are now made in India, and most Macs, iPads, AirPods, and Watches are shifting to Vietnam. It’s not exactly a supply chain revolution, but it’s a start.
Still, let’s not pretend the hardware narrative is that exciting. iPhone revenue was $46.8 billion—up just under 2%. Mac and iPad sales looked better, sure, but that’s more about refreshed SKUs than real momentum. And wearables? Down 5%, with Cook blaming last year’s Vision Pro halo. Nice try.
But here’s the real kicker: for all of Apple’s long-term plans—AI features delayed, a foldable iPhone coming next year, the usual PR fluff—the company’s short-term story is being dictated by forces outside its control and cracks within its own empire.
Tariffs are unpredictable. China sales are slipping. The App Store is under siege. And while buybacks and dividends make for a cute distraction ($100 billion and a 4% boost, respectively), they don’t change the fact that Apple’s once-bulletproof ecosystem is taking on water.
So yeah—“wobbly” is the word. Again.
Good night
