Tim Cook: Apple Faces $900M Tariff Hit, But Outlook Uncertain
- Apple estimates tariffs could add $900 million to Q3 costs if current rates persist.
- CEO Tim Cook warns that their future impacts are uncertain amid shifting trade policies.
- Apple is diversifying its supply, sourcing more iPhones from India and other products from Vietnam.
Apple CEO Tim Cook revealed on Thursday that U.S. tariffs could add $900 million to the company’s costs in the June quarter, offering the first detailed comments on the impact of President Trump’s evolving trade policies.
While Apple saw only “limited impact” from tariffs in the March quarter, Cook cautioned that the $900 million estimate for Q3 depends on no changes to current global tariff rates or new tariffs being introduced.
The announcement provided some relief to investors, but concerns lingered over how future quarters might be affected given the volatility of U.S. trade policy.
Cook emphasised that the estimate should not be used to predict future impacts, as unique factors are benefiting the June quarter.
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He also highlighted Apple’s efforts to diversify its supply chain, noting that about half of iPhones for the U.S. are now sourced from India, with most other products coming from Vietnam.
Despite these challenges, Apple reported strong Q2 results, with $95.4 billion in revenue and an 8% increase in earnings per share. However, shares dipped after the call as investors weighed ongoing tariff risks and Apple’s slower progress in AI and China.
Cook reaffirmed Apple’s commitment to long-term innovation and adaptability, but declined to predict the future mix of production or tariff effects, citing ongoing uncertainty.
Edited by Annette George
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