Apple says tariffs will cost $900 million
Apple CEO Tim Cook revealed during the company’s second-quarter earnings call that tariffs imposed by the US government are expected to add $900 million to Apple’s costs in the third quarter, although the long-term impact remains uncertain.
Cook’s comments provided some clarity on the potential effects of President Trump’s tariffs, but investors remained cautious due to the rapidly changing US trade policies. The estimate was based on current global tariff rates, policies, and applications remaining unchanged for the rest of the quarter and no new tariffs being introduced.
Cook emphasized that this estimate should not be used to predict the impact of tariffs in future quarters, citing “unique factors” that benefit the June quarter. He also expressed reluctance to forecast the future, stating, “I don’t want to predict the future, because I’m not sure what will happen with the tariffs.”
In a recent CNBC interview, Cook downplayed the impact of tariffs, highlighting that Apple already sources about half its iPhones for the US market from India and most other products from Vietnam. He reaffirmed Apple’s commitment to managing the company with “thoughtful and deliberate decisions” and a focus on long-term investments and innovation.
Cook assured investors that Apple remains confident in its ability to innovate and deliver high-quality products and services, despite the uncertainty surrounding tariffs. The company’s proactive stance on managing tariffs was evident in its discussions with the US government, which led to iPhones being spared from certain trade policy changes.