As Apple prepares to announce its fiscal second-quarter results, investors are seeking reassurance on the company’s artificial intelligence strategy and its approach to managing rising US-China tariff risks, amid expectations of a modest decline in iPhone sales.

The highly anticipated results come against a backdrop of strong demand for the $599 iPhone 16e, even as broader iPhone sales are expected to slip for a second consecutive quarter. Despite these headwinds, overall group revenue is forecast to rise 4.2% for the January-March period, supported by growth in iPads and services.

Private equity stakeholders remain constructive on Apple’s ability to navigate near-term challenges and adapt its global footprint. Eric Schiffer, chairman of private equity firm Patriarch Organization – which holds Apple shares – noted that while tariffs present a risk, Apple’s diversified supply chain strategy and brand strength position it well for the future. “Tariffs are a sword of Damocles for Apple – dangling, disruptive, and politically charged,” Schiffer said, while reiterating private equity’s sustained confidence in Apple’s long-term value creation.

Apple is proactively expanding its US-bound iPhone production in India to mitigate potential tariff impacts, while working with vendors to manage supply chain costs without eroding its consumer value proposition.

Meanwhile, investors are keen to hear more about Apple’s AI roadmap. Although improvements to Siri have been delayed until 2026, Apple continues to invest in partnerships, including with Alibaba for AI services in China, where competition from Huawei is intensifying.

Despite market volatility, Apple’s services division is forecast to deliver 11.8% growth, highlighting the resilience and scalability of its high-margin business lines—an attractive quality for long-term private equity investors seeking exposure to durable tech platforms.

As Apple faces one of its most important earnings calls of the year, private equity players remain firmly engaged, viewing temporary market dislocations as opportunities for strategic positioning around a global tech leader.

Source: ET Telecom