Apple has warned that its costs will increase by approximately $900 million for the quarter running from April through June, as the company faces the financial implications of the Trump administration's tariffs on imports from China.
The announcement came during Apple’s quarterly earnings call, with CEO Tim Cook providing insights on how tariffs will affect the company’s bottom line.
While tariffs had a minimal impact on Apple’s costs in the January to March quarter, the tech giant expects a larger financial burden this time around. Cook clarified that the $900 million estimate assumes no significant changes to the tariff policies over the next few months. He also noted that future quarters may experience even higher costs, depending on how the U.S. government handles trade relations.
Apple’s strategy to mitigate the tariff impact includes sourcing more products from countries other than China. For example, most iPhones sold in the U.S. during the June quarter will come from India, while products like iPads and Macs will be sourced from Vietnam. Despite this, China will remain the primary source for Apple products sold in non-U.S. markets.
The company is also facing additional tariff challenges. In April, a 125% tariff was imposed on certain Apple products like AppleCare and accessories, resulting in a cumulative 145% tariff rate on some items imported from China.
Despite these hurdles, Apple remains committed to managing its operations carefully and focusing on long-term growth and innovation. Cook emphasised that the company would continue to make thoughtful decisions, prioritising its customers and staying focused on what truly matters.
