06:32 AM EDT, 05/02/2025 (MT Newswires) -- Apple ( AAPL ) shares declined early Friday as Chief Executive Tim Cook warned that it is "very difficult" to predict the impact of tariffs beyond June, while the iPhone maker reported better-than-expected fiscal second-quarter results.

In a late Thursday conference call with analysts, Cook said the company estimates global tariffs to add $900 million to its costs in the June quarter, assuming current rates and policies don't change for the remainder of the period. Cook cautioned that the estimate shouldn't be used to make projections for future quarters, "as there are certain unique factors that benefit the June quarter."

Last month, US President Donald Trump announced sweeping new tariffs on imports, including from China, but later declared a 90-day pause on certain duties for non-retaliating countries. Washington and Beijing have been in a deadlock over the matter, but the Trump administration was recently reported to have reached out to China to begin tariff discussions.

"I'm not sure what will happen with the tariffs," Cook said on the call, according to a FactSet transcript. "So, it's very difficult to predict beyond June." Shares of the company were down 2.8% in the most recent premarket activity.

The company anticipates annual revenue growth of low- to mid-single-digits in the June quarter, Chief Financial Officer Kevan Parekh said on the call, while the current consensus on FactSet is for $89.12 billion. Gross margin is pegged at 45.5% to 46.5%, including the estimated $900 million of tariff-related costs, while operating expenses are forecast to be between $15.3 billion and $15.5 billion, according to Parekh.

Apple ( AAPL ) expects the majority of iPhones sold in the US to have India as their source country for the ongoing quarter and Vietnam to be the country of origin for "almost all iPad, Mac, Apple Watch and AirPods products," Cook told analysts. "China would continue to be the country of origin for the vast majority of total product sales outside the US," the CEO added.

The demand environment appears to be stable for Apple ( AAPL ) and its guidance for the current quarter was "generally" in line with expectations, Wedbush Securities said in a Thursday client note. The brokerage remains bullish on the long-term opportunity of the tech giant's flagship ecosystem, and recommended investors to "look past" the next three months and assume China tariff negotiations take a positive turn.

"We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates," Cook said.

For the quarter ended March 29, Apple ( AAPL ) posted net income of $1.65 a share, up from $1.53 the year before and ahead of the Street's view for $1.62. Sales advanced to $95.36 billion from $90.75 billion, topping the average analyst estimate of $94.54 billion. Tariffs had a "limited impact" in the quarter as the company was able to optimize its supply chain and inventory, according to Cook.

Sales for iPhone moved higher to $46.84 billion from $45.96 billion in the 2024 quarter. Mac revenue increased to $7.95 billion from $7.45 billion, while iPad sales rose to $6.4 billion from $5.56 billion. Wearables, home and accessories sales declined to $7.52 billion from $7.91 billion last year.

Services revenue jumped 12% year over year to $26.65 billion with "strong performance across all of our categories," Cook said. Apple ( AAPL ) logged revenue growth in all of its geographic segments, including the Americas, Europe and Japan, except China, which moved down to $16 billion from $16.37 billion in the prior-year period.

The company raised its quarterly dividend by 4% to $0.26 per share and authorized an additional $100 billion share repurchase program.