Apple could spend $900 million on tariffs over the next quarter
In an earnings call for the quarter ending in March, Apple CEO Tim Cook said the company expects to pay around $900 million for US tariffs for the months of April to June. Apple saw limited impacts from tariffs for the months January through March, which doesn't come as a surprise since most of the government's new import taxes didn't exist before April. The company was also able to optimize its supply chain and inventory before then. Cook admitted that Apple can't give a precise estimate of the impact tariffs will have on the company in the coming months because the Trump administration's rules could still change the future.
"For the June quarter, currently, we are not able to precisely estimate the impact of tariffs as we are uncertain of potential future actions prior to the end of the quarter," the CEO explained. The $900 million figure came from the company's estimates, assuming "current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added." Investors seemed relieved that Apple is only slated to spend $900 million to pay the new taxes, which is a drop in the bucket for a company valued at over $3 trillion. When an inventor asked what tariffs would look like for Apple after June, though, Cook said: "I don’t want to predict the future, because I’m not sure what will happen with the tariffs."
"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 assured investors. Apple posted a quarterly revenue of $95.4 billion, up 5 percent year over year, for January to March 2025. Apple told CNBC that it's manufacturing half the iPhones meant for the US in India instead of China, which would mean lower tariff rates for the company. It will also manufacture most of its other products for the US in Vietnam. This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-could-spend-900-million-on-tariffs-over-the-next-quarter-123037323.html?src=rss