Apple shares gain as investors await second quarter earnings

Apple Inc. shares advanced on Thursday as the tech giant prepared to release its fiscal second-quarter earnings following the market close. These results mark a pivotal moment for the company, coming just a week after the landmark announcement that Tim Cook will step down as CEO after a 15-year tenure.

Wall Street analysts anticipate earnings per share of $1.95 on revenue of $109.7 billion. This would represent a 15% year-over-year increase from the $95.4 billion reported in the same period last year. The primary catalyst for this growth is the iPhone, with investors projecting a 20% surge in annual sales driven by the strong market reception of the iPhone 17 series.

Specific segment expectations include $56.7 billion from iPhone sales, $8.16 billion from Mac, and $6.71 billion from iPad. This momentum follows Apple's March product launch, which introduced the iPhone 17e and refreshed iPad Air models featuring the M4 chip. However, the standout reveal was the MacBook Neo—a budget-friendly laptop priced at $599 designed to capture the student and value-oriented segments.

Beyond the balance sheet, investors are focused on the transition to incoming CEO John Ternus. A veteran executive previously leading hardware engineering, Ternus will officially succeed Cook on September 1, while Cook transitions to Executive Chairman.

A top priority for Ternus will be defining Apple’s long-term artificial intelligence roadmap.

At 12:55 p.m. EDT, Apple stock gained 0.69%, or $1.88, at $272.05. Year-to-date, the stock is up 0.32%.

Earlier in the quarter, Apple announced a partnership with Google to integrate the Gemini AI model into Siri. While rivals like Meta, Amazon, Alphabet, and Microsoft are collectively investing over $500 billion in AI infrastructure this year, Apple’s spending in this area has remained notably more conservative.

Apple says CCI overstepping judicial authority

Apple has accused India's antitrust regulator with overstepping its legal authority by demanding the company's financial records in an ongoing iPhone app market probe, while Apple simultaneously contests the nation's penalty laws, recent documents indicate.

Apple contends it faces potential fines reaching $38 billion in this case. The Competition Commission of India (CCI) has been seeking these financial details since 2024—data typically used to determine penalty amounts—after a preliminary investigation suggested Apple abused its market dominance. Apple has resisted these demands, arguing that because it is challenging India’s entire antitrust penalty framework in a New Delhi court, the watchdog should suspend its requirements.

Following a recent CCI ultimatum for the data and the scheduling of a final hearing for May 21, Apple has requested urgent intervention from the Delhi High Court to freeze the proceedings. In its filing, Apple claimed the "commission's decision to schedule a final hearing represents an escalation in its efforts to usurp" the court's authority, asking for a judicial hearing on May 15.

The legal pushback follows an April order from the CCI, which stated that Apple had been given "adequate opportunities" to contest the investigation’s findings but had failed to provide the "requisite financial information."

This Indian dispute adds to a growing list of global antitrust challenges for Apple. India remains a vital growth region for the company; despite Apple's argument that it is a minor player compared to Google’s Android, its local market share has grown from 4% to 9% over the last two years, according to Counterpoint Research.