Apple CEO Tim Cook has revealed that the company expects tariffs to increase its costs by approximately $900 million in the third quarter. Cook made this announcement at Apple’ earnings call. Along with this, he also discussed the financial impact of the current trade policies on the company. Cook also mentioned that Apple experienced limited impact from the recently imposed US tariffs in the March quarter. However, the Q3 estimate is based on the present global tariff rates. He cautioned investors against using this estimate to predict future quarters, citing “unique factors” that benefit the June quarter.
Apple CEO Tim Cook on the $900 million figureCook emphasised that this $900 million figure is based on current global tariff rates and policies remaining unchanged throughout the quarter. He also cautioned that the actual impact could vary if tariff policies are adjusted.
"Assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs," Cook said.
The announcement comes as Apple seeks to mitigate the impact of potential tariffs from the Trump administration. While electronic products including smartphones recently received a temporary exemption from the 145% tariffs on Chinese imports, Cook warned that future duties could significantly impact costs.
To mitigate tariff-related costs, Apple has been diversifying its supply chain, sourcing half of its iPhones for the U.S. from India and most other products from Vietnam. Cook reassured investors that Apple is actively managing risks associated with global trade shifts.
“For our part, 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.
Over 50% iPhones Americans bought in first three months of 2025 were made in IndiaDuring the earnings call, Cook also announced that India will become the primary manufacturing hub for iPhones sold in the United States, marking a significant shift in the tech giant's production strategy amid escalating trade tensions.
"For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin," Cook said during Apple's quarterly earnings call, where the company reported a 5.1% revenue increase to $95.36 billion.
Apple CEO Tim Cook on the $900 million figureCook emphasised that this $900 million figure is based on current global tariff rates and policies remaining unchanged throughout the quarter. He also cautioned that the actual impact could vary if tariff policies are adjusted.
"Assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs," Cook said.
The announcement comes as Apple seeks to mitigate the impact of potential tariffs from the Trump administration. While electronic products including smartphones recently received a temporary exemption from the 145% tariffs on Chinese imports, Cook warned that future duties could significantly impact costs.
To mitigate tariff-related costs, Apple has been diversifying its supply chain, sourcing half of its iPhones for the U.S. from India and most other products from Vietnam. Cook reassured investors that Apple is actively managing risks associated with global trade shifts.
“For our part, 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.
Over 50% iPhones Americans bought in first three months of 2025 were made in IndiaDuring the earnings call, Cook also announced that India will become the primary manufacturing hub for iPhones sold in the United States, marking a significant shift in the tech giant's production strategy amid escalating trade tensions.
"For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin," Cook said during Apple's quarterly earnings call, where the company reported a 5.1% revenue increase to $95.36 billion.
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