The Top 5 Analyst Questions From Apple’s Q1 Earnings Call

Apple’s first quarter results modestly exceeded Wall Street’s expectations, but the market responded negatively amid persistent concerns about trade policy and margin pressures. Management cited growth in the iPhone, Mac, and iPad lines, along with an all-time high in Services revenue. CEO Tim Cook pointed to new product launches, including the iPhone 16e and M4-powered MacBook Air, as key contributors. However, he acknowledged that headwinds—such as shifting supply chain dynamics and the impact of tariffs—were top of mind, stating, “For the March quarter, we had a limited impact from tariffs as we were able to optimize our supply chain and inventory.”

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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 Apple’s Q1 Earnings Call

• Erik Woodring (Morgan Stanley) asked about the future mix of iPhones sourced from India. CEO Tim Cook explained most U.S. iPhones would be India-made this quarter but avoided longer-term predictions.
• Ben Reitzes (Melius) questioned whether the $900 million tariff impact could grow in future quarters. Cook said it was difficult to predict due to ongoing trade investigations and policy changes.
• Michael Ng (Goldman Sachs) inquired about Apple’s approach to pricing and supply chain efficiency amid tariff uncertainty. Cook emphasized ongoing operational optimization but did not disclose plans for passing costs to consumers.
• Wamsi Mohan (Bank of America) asked about the margin impact from sourcing more components in the U.S. and India. CFO Kevan Parekh highlighted that each product cycle’s cost structure varies and margin management remains a focus.
• Richard Kramer (Arete Research) sought insight into the timeline for new Siri features and the effect of legal cases on Services. Cook acknowledged delays in Siri development and legal risks, while Parekh reiterated continued investment in R&D.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will focus on (1) the pace at which Apple Intelligence features and related AI updates drive device upgrades and user engagement, (2) the ongoing impact of tariffs and any Section 232-related trade policy changes on costs and margins, and (3) the company’s ability to mitigate regulatory and legal risks, particularly in the Services segment. The effectiveness of new supply chain strategies and product launches will also remain critical signposts.

Apple currently trades at $196.05, down from $212.83 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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