Apple’s 2Q25 in Three Charts
We are going to change gears and return to discussing Apple’s 2Q25 earnings release. Today’s update will go over three themes, and corresponding charts, arising from Apple’s quarterly results.
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Thoughts on Apple’s 2Q25 Earnings
Welcome to a special Friday edition of the Above Avalon Daily. Today's update will go over Apple's earnings.
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Previewing Apple’s 2Q25 Earnings
Hello everyone. The news flow isn't taking a break. The ongoing Epic Games vs. Apple legal battle in the U.S. took a sharp turn against Apple. There is a lot to discuss from the court ruling involving anti-steering. The timing for having that discussion isn't great though with Apple earnings on our doorstep.
Here's the game plan:
We will go forward as we were with preparing for and then reviewing Apple's earnings. In today’s update, we will preview the release. Apple plans to release earnings tomorrow (Thursday) after market close. The report usually comes out at 4:30 PM ET.
In order to go over Apple's earnings on a timely manner, Thursday's update will come out early Friday (ET).
We will talk about the ruling early next week (i.e. Monday). Depending on what Apple reports on Thursday, we will then circle back to reviewing earrings later next week.
Earlier today, Alphabet / Google CEO Sundar Pichai testified in court, as part of Google’s antitrust remedies phase, that Google hopes to integrate Gemini with Apple Intelligence (iPhones) in 2025. The timeline makes a WWDC unveiling possible. This disclosure comes at a good time as we just discussed in yesterday’s update why Google needs such integration.
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Early Thoughts on Tariff Impact on Apple’s Financials, Apple Valuation Update
Hello everyone.
Apple reports earnings on May 1st. We will go over my detailed earnings expectations early next week.
To tie up a few loose ends that are still outstanding on the tariff front, there is value in going over my early thoughts on how tariffs will impact Apple’s financials over the next few quarters.
After what seemed to be a good two to three years of noisy Apple quarters coming out of the pandemic, there were expectations that the second half of 2024 and 2025 would provide a cleaner look at Apple’s underlying business fundamentals. Given the various moving pieces related to tariffs, Apple's FY2025 may turn out to be a noisy year from a financials perspective.
Let’s jump in for more discussion.
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Apple 1Q25 Earnings Review
Today's Above Avalon Daily email contains the following story:
Apple 1Q25 Earnings Review
Welcome to a special Friday edition of the Above Avalon Daily. Here is our game plan for tackling Apple’s 1Q25 earnings:
Today: Discuss big picture takeaways.
Monday: Discuss takeaways from Apple’s earnings conference call.
Tuesday: Catch basin edition where we cover leftover items / dive into a few follow-ups.
My Apple earnings model has been updated for both 1Q25 and 2Q25 guidance. My estimates for FY25 and FY26 have also been revised. The updated model has already been uploaded to the "Digital Package" tab within the Above Avalon Payer Portal (accessible to members who have attached the Financial Models add-on to their membership). This is the quickest turnaround in my earnings model being made accessible to others following earnings. The plan is to spend some time updating my iPhone, iPad, and Apple Watch installed base models over the weekend. We received a number of new data points that need to be incorporated into the models.
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Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive the Above Avalon Daily newsletter, widely-recognized as the leading daily newsletter dedicated to Apple. Now in its tenth year.
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Member Forum Access. Access all channels in the Above Avalon forum in Discord.
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Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.