You can bet that major portions of the earnings calls from Apple (AAPL) and Amazon.com (AMZN) will focus on tariffs.
As in: How the tariff disputes between the United States and other countries, especially China, is affecting current business and business going forward.
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The two technology-related giants are scheduled to release earnings after Thursday’s close.
Shares of both are up ahead of the reports. Apple was up 10 cents to $212.60. Amazon was up $5.71, or about 3% to $190.13.
Both companies are exposed directly to the China-U.S. trade dispute.
Related: Billionaire Bill Ackman sends hard-nosed message on China, U.S. trade war
Apple and the iPhone challenge
Apple makes most of its iPhones in China and distributes them around the world.
And, while tariffs of 125% in the United States have been suspended for a 90-day period (leaving 20% or so still in place), the company is scrambling to move as much iPhone production made for the U.S market to other countries, notably India and Vietnam.
Apple has been struggling with other issues, especially the lukewarm reception for its latest iPhone because of weak performance of its Apple Intelligence feature.
Apple is expected to earn $1.62 a share in the fiscal second quarter, up from $1.53 a year ago. Revenue is estimated at $94.75 billion, up 4.4% from a year ago.
Amazon has its own China problems
Amazon.com’s problem is not manufacturing. It’s that something like 70% of its inventory sold in the United States whether made for the company directly or sold by vendors, comes from China.
Nonetheless, Amazon is seen reporting earnings of $1.37 a share for the first quarter, up from 98 cents a year ago. The average revenue estimate is $155.1 billion, up 8.2% from a year ago.
Related: Nvidia CEO sends Washington 10-word message on AI chip change
Both companies have nurtured relationships with the Trump Administration, although Amazon did get into a loud spat with the administration when plans for possibly showing what tariffs would add to the price of a product came to light.
That went against the Trump assertion that tariffs might not raise prices. White House Press Secretary Caroline Leavitt called the plan “a hostile and political act.”
The president called Jeff Bezos, Amazon’s executive chairman, who assured Trump the plan was dead.
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