Tech Giants Apple and Amazon to Release Earnings Reports
Shares of Apple (AAPL) and Amazon.com (AMZN) rose ahead of their earnings reports scheduled for release after Thursday’s close. The tech giants are directly exposed to the China-U.S. trade dispute, with a significant focus on tariffs during their earnings calls.
Apple, which manufactures most of its iPhones in China, has been working to shift some of its iPhone production to other countries like India and Vietnam due to the tariffs imposed. Despite a 90-day suspension of 25% tariffs on some Chinese goods, a 20% tariff remains in place. Apple is expected to report earnings of $1.62 per share for the fiscal second quarter, up from $1.53 a year ago, with revenue estimated at $94.75 billion, a 4.4% increase.
Amazon, on the other hand, faces challenges due to its heavy reliance on Chinese inventory. About 70% of its inventory sold in the U.S. originates from China. Amazon is expected to report earnings of $1.37 per share for the first quarter, up from 98 cents a year ago, with average revenue estimates at $155.1 billion, an 8.2% increase.
Both companies have maintained relationships with the Trump Administration, although Amazon had a public spat with the administration over plans to display the potential price increases due to tariffs. The White House Press Secretary criticized the plan, calling it “a hostile and political act.”
Earnings Expectations and Tariff Impact
The earnings reports from Apple and Amazon will provide insights into how these tech giants are navigating the complexities of the China-U.S. trade dispute. The focus on tariffs during their earnings calls is expected to shed light on the potential long-term impact on their businesses.
As the situation continues to unfold, investors and analysts will be closely watching the earnings reports and the guidance provided by these companies to understand their strategies for mitigating the effects of the tariffs and the ongoing trade tensions.
