Latest news with #Indian-made
Time of India
17 hours ago
- Business
- Time of India
Apple earnings under pressure from tariffs, slow AI roll-out
Long seen as the safest Big Tech bet, Apple is heading into Thursday's earnings with its business facing pressure from U.S. tariffs, tough competition in China and a high-stakes artificial intelligence race it has been late to enter. Wall Street expects the company to post a 4.2% rise in revenue for the April-June quarter to $89.34 billion. Still, the focus will be on how Apple plans to adjust to a landscape that has turned its global supply chain, long a strength, into a potential liability. U.S. President Donald Trump has targeted the consumer electronics giant for its reliance on overseas manufacturing, threatening 25% tariffs on foreign-made iPhones. To limit the damage, Apple shifted production of U.S.-bound iPhones to India, further drawing Trump's ire. The total volume of Indian-made smartphones jumped 240% in the second quarter, largely driven by Apple's supply chain shift, according to research firm Canalys. Analysts and investors are now expecting the strategy to help Apple limit the hit from tariffs to well below $900 million it had estimated in May. IPhones are "a very high-profile product that both the Chinese and the U.S. governments understand they have a lever over," D.A. Davidson analyst Gil Luria said. "So until the tariff rates get settled, Apple is very much at risk of being impacted by the current trade dispute." Analysts also said Apple, like many other firms, potentially overestimated tariff costs to leave room for an earnings beat. "Most companies we follow have made conservative assumptions by overestimating tariff costs as the goal of management is generally to beat its own guidance," said Jamie Meyers, senior analyst at Apple shareholder Laffer Tengler Investments. Sales of iPhones are expected to have risen 2.2% in Apple's fiscal third quarter, according to data compiled by LSEG, helped by an improvement in demand in China, Apple's third-largest market. In the fiscal second quarter, this increased 1.9%. Counterpoint Research data shows iPhone sales in the world's largest smartphone market jumped 8% in the quarter, fueled by steep discounts during the 618 shopping festival, government-backed trade-in subsidies and targeted iPhone 16 Pro promotions. Sales of Apple's other devices are expected to have slowed in the April-June period, while revenue from services - its fastest-growing segment in recent years - is likely to rise to 10.7%. In the January-March period, services revenue grew 11.6%. Doubts still remain over Apple's prospects in China, where domestic companies including Honor are rolling out smartphones packed with AI features such as generative AI photo editors. Apple's cautious approach to AI has fueled concerns it is sitting out what could be the industry's biggest growth wave in decades. The company was slow to roll out its Apple Intelligence suite, including a ChatGPT integration, while a long-awaited AI upgrade to Siri has been delayed until next year.
Time of India
a day ago
- Business
- Time of India
Apple earnings under pressure from tariffs, slow AI roll-out
Long seen as the safest Big Tech bet, Apple is heading into Thursday's earnings with its business facing pressure from US tariffs, tough competition in China and a high-stakes artificial intelligence race it has been late to enter. Wall Street expects the company to post a 4.2% rise in revenue for the April-June quarter to $89.34 billion. Still, the focus will be on how Apple plans to adjust to a landscape that has turned its global supply chain, long a strength, into a potential liability. US President Donald Trump has targeted the consumer electronics giant for its reliance on overseas manufacturing, threatening 25% tariffs on foreign-made iPhones. To limit the damage, Apple shifted production of US-bound iPhones to India, further drawing Trump's ire. The total volume of Indian-made smartphones jumped 240% in the second quarter, largely driven by Apple's supply chain shift, according to research firm Canalys. Analysts and investors are now expecting the strategy to help Apple limit the hit from tariffs to well below $900 million it had estimated in May. IPhones are "a very high-profile product that both the Chinese and the US governments understand they have a lever over," DA Davidson analyst Gil Luria said. "So until the tariff rates get settled, Apple is very much at risk of being impacted by the current trade dispute." Analysts also said Apple, like many other firms, potentially overestimated tariff costs to leave room for an earnings beat. "Most companies we follow have made conservative assumptions by overestimating tariff costs as the goal of management is generally to beat its own guidance," said Jamie Meyers, senior analyst at Apple shareholder Laffer Tengler Investments. Sales of iPhones are expected to have risen 2.2% in Apple's fiscal third quarter, according to data compiled by LSEG, helped by an improvement in demand in China, Apple's third-largest market. In the fiscal second quarter, this increased 1.9%. Counterpoint Research data shows iPhone sales in the world's largest smartphone market jumped 8% in the quarter, fueled by steep discounts during the 618 shopping festival, government-backed trade-in subsidies and targeted iPhone 16 Pro promotions. Sales of Apple's other devices are expected to have slowed in the April-June period, while revenue from services - its fastest-growing segment in recent years - is likely to rise to 10.7%. In the January-March period, services revenue grew 11.6%. Doubts still remain over Apple's prospects in China, where domestic companies including Honor are rolling out smartphones packed with AI features such as generative AI photo editors. Apple's cautious approach to AI has fueled concerns it is sitting out what could be the industry's biggest growth wave in decades. The company was slow to roll out its Apple Intelligence suite, including a ChatGPT integration, while a long-awaited AI upgrade to Siri has been delayed until next year.
Indian Express
a day ago
- Business
- Indian Express
ln two weeks, a crucial test for India smartphone success story
President Donald Trump's announcement on Wednesday of a 25 per cent tariff rate on India from August 1 has triggered concerns in the government that electronics exports to the United States, particularly the growing smartphone exports — which currently attract no customs duty — could be affected. A senior government official said a review meeting on Section 232 of the US Trade Expansion Act of 1962 is coming up in two weeks, after which there will be more clarity on whether smartphone exports could be impacted. In 2018, the US had imposed an additional tariff of 25 per cent and 10 per cent on steel and aluminum respectively, globally under the same provision, which had impacted Indian exports. While smartphones are India's top export to the US by value, Trump has threatened a 25 per cent tariff on Indian-made Apple iPhones, which account for the bulk of mobile phone exports to the country. Days after he announced reciprocal tariffs on a number of countries in April, the US administration had exempted phones, computers and other electronic products, even as the threat of a renewed tariff threat on these items looms large. Section 232 of the Act allows the US President to restrict imports that threaten national security. Specifically, the Secretary of Commerce investigates imports and if it's determined that those imports threaten national security, the President can impose tariffs or other restrictions. The term 'national security' is not defined in the statute. At present, smartphone imports into the US from India attract no customs duty, but India levies a 16.5 per cent tariff on such exports from the US. Smartphone makers have urged New Delhi to drop these tariffs, as they are worried it could irk the US administration, which could impose fresh duties on these imports. Sources said that as part of India's ongoing negotiations with the US for a bilateral trade agreement, New Delhi has agreed to reduce this duty to zero. 'There is a review meeting (on Section 232 exemptions) in the next two weeks, and we will have better clarity after that. The Commerce Ministry will negotiate for status quo,' a senior government official said, requesting anonymity. Since Trump has taken office, the US has launched investigations under Section 232 of its Trade Expansion Act of 1962 in sectors like semiconductors and pharmaceuticals, to determine whether imports in these industries could have national security implications for Washington. The Indian Express had earlier reported that India's share in US smartphone imports surged to nearly 36 per cent in the first five months of 2025, from about 11 per cent in 2024. China, which continues to dominate the product category, saw its share drop from 82 per cent to 49 per cent over the same period. US smartphone imports from India jumped by over three times year-on-year to 21.3 million units between January and May this year, according to data from the US International Trade Commission (USITC). In value terms (CIF), imports of Indian-made smartphones increased 182 per cent y-o-y to $9.35 billion, already higher than around $7 billion in the whole of 2024. In May, Apple CEO Tim Cook had said the company expects most iPhones sold in the US in the April-June quarter to have India as their country of origin. Roughly 20 per cent of Apple's global iPhone production capacity is now based in India. Meanwhile, China exported 29.4 million smartphones to the US between January and May — a 27 per cent y-o-y drop — valued at around $10 billion. China (49 per cent) and India (36 per cent) were followed by Vietnam with 8.3 million units exported, accounting for a share of 14 per cent. Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
Time of India
2 days ago
- Business
- Time of India
Apple earnings under pressure from tariffs, slow AI roll-out
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Long seen as the safest Big Tech bet, Apple is heading into Thursday's earnings with its business facing pressure from U.S. tariffs , tough competition in China and a high-stakes artificial intelligence race it has been late to Street expects the company to post a 4.2% rise in revenue for the April-June quarter to $89.34 billion. Still, the focus will be on how Apple plans to adjust to a landscape that has turned its global supply chain , long a strength, into a potential liability. U.S. President Donald Trump has targeted the consumer electronics giant for its reliance on overseas manufacturing, threatening 25% tariffs on foreign-made iPhones. To limit the damage, Apple shifted production of U.S.-bound iPhones to India , further drawing Trump's total volume of Indian-made smartphones jumped 240% in the second quarter, largely driven by Apple's supply chain shift, according to research firm and investors are now expecting the strategy to help Apple limit the hit from tariffs to well below $900 million it had estimated in are "a very high-profile product that both the Chinese and the U.S. governments understand they have a lever over," D.A. Davidson analyst Gil Luria said. "So until the tariff rates get settled, Apple is very much at risk of being impacted by the current trade dispute."Analysts also said Apple, like many other firms, potentially overestimated tariff costs to leave room for an earnings beat."Most companies we follow have made conservative assumptions by overestimating tariff costs as the goal of management is generally to beat its own guidance," said Jamie Meyers, senior analyst at Apple shareholder Laffer Tengler Investments. Sales of iPhones are expected to have risen 2.2% in Apple's fiscal third quarter, according to data compiled by LSEG, helped by an improvement in demand in China, Apple's third-largest market. In the fiscal second quarter, this increased 1.9%.Counterpoint Research data shows iPhone sales in the world's largest smartphone market jumped 8% in the quarter, fueled by steep discounts during the 618 shopping festival, government-backed trade-in subsidies and targeted iPhone 16 Pro of Apple's other devices are expected to have slowed in the April-June period, while revenue from services - its fastest-growing segment in recent years - is likely to rise to 10.7%. In the January-March period, services revenue grew 11.6%.Doubts still remain over Apple's prospects in China, where domestic companies including Honor are rolling out smartphones packed with AI features such as generative AI photo cautious approach to AI has fueled concerns it is sitting out what could be the industry's biggest growth wave in decades. The company was slow to roll out its Apple Intelligence suite, including a ChatGPT integration, while a long-awaited AI upgrade to Siri has been delayed until next year.
The Print
3 days ago
- Politics
- The Print
India's air defence system foiled 1,000 Pakistani drone attacks on 9 May—Modi tells Parliament
'On May 9, Pakistan launched 1,000 missiles and drones on India. But all of them were destroyed in the air,' Modi told the Lok Sabha. 'Our air defences crushed their drones. They destroyed and scattered them mid air. Had any of them struck our cities, the destruction would have been unimaginable.' The prime minister called the attempted assault 'a massive but failed provocation' and praised Indian forces for what he described as an unprecedented air defence operation. New Delhi: India's air defence systems intercepted and destroyed 1,000 drones and missiles launched by Pakistan on 9 May during Op Sindoor, Prime Minister Narendra Modi told Parliament Tuesday during a special debate on Op Sindoor. The drone attack, according to Indian intelligence assessments, was part of a broader strategy by Pakistan to overwhelm Indian airspace, using small, fast-moving unmanned aerial systems and low-altitude cruise missiles. Modi praised the indigenous defence manufacturing sector, saying that Indian-made drones and missile systems were central to both Operation Sindoor and the successful repelling of Pakistani aerial threats. 'Today's India is filled with confidence,' Modi said. 'Make in India weapons which included our own drones, missiles, and radar systems were at the core of our response.' He said india's response to the drone attacks should make everyone proud. 'Pakistan made false claims of having destroyed Adampur base. The next day, I went there and proved them wrong,' he added. On 13 May, the PM visited Adampur Air Force Base in Punjab in response to Pakistan's claims of having targeted the base and 'destroyed' the S-400 air defence system during the post-Operation Sindoor conflict. Among the photos PM Modi shared from the visit was an image of him saluting, with the S-400 system air defence system visible in the background. (Edited by Viny Mishra) Also read: Pakistan used Turkish drones, with civil airliner as shield. India then hit its radar station
