{"id":5219,"date":"2025-05-02T18:21:50","date_gmt":"2025-05-02T18:21:50","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/02\/tim-cook-says-tariffs-will-cost-apple-900m-in-april-june-quarter\/"},"modified":"2025-05-02T18:22:07","modified_gmt":"2025-05-02T18:22:07","slug":"tim-cook-says-tariffs-will-cost-apple-900m-in-april-june-quarter","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/02\/tim-cook-says-tariffs-will-cost-apple-900m-in-april-june-quarter\/","title":{"rendered":"Tim Cook Says Tariffs Will Cost Apple $900M in April-June Quarter"},"content":{"rendered":"
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Apple CEO Tim Cook warned that tariffs will add $900 million in costs. Cooper Neill\/Getty Images<\/span><\/figcaption><\/figure>\n

Apple (AAPL)<\/a> CEO Tim Cook<\/a> was peppered with seemingly nonstop tariff questions during the company\u2019s quarterly earnings call yesterday (May 1). Addressing mounting concerns over U.S.-China trade tensions, Cook revealed that current tariffs could cost the iPhone maker $900 million in the April\u2013June period.<\/p>\n

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\u201cAssuming 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,\u201d Cook told analysts.<\/p>\n

\u201cFor our part, we will manage the company the way we always have\u2014with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates,\u201d he added.<\/p>\n

Apple manufactures the vast majority of its iPhones in China, placing it in a difficult position in an escalating trade war between the U.S. and China. While consumer electronics have been temporarily exempted from President Donald Trump<\/a>\u2019s proposed 125 percent reciprocal tariffs, Apple products still face a 20 percent levy\u2014and more could be on the way.<\/p>\n

Cook acknowledged that due to continued uncertainty around trade policy, Apple is unable to forecast tariff costs beyond the current quarter. For the moment, however, he said the company has not made any pricing changes and has not seen a surge in consumer demand driven by fears of future price hikes.<\/p>\n

Apple posted strong results in all markets except China. Total revenue rose 5 percent year-over-year to $95.4 billion in the first three months of 2025, beating Wall Street expectations. iPhone sales reached $46.8 billion, up 2 percent from a year ago, while Mac and iPad sales climbed 7 percent and 15 percent, respectively.<\/p>\n

Accelerating manufacturing shift to India<\/h3>\n

In recent years, Apple has reduced its reliance on China by shifting product production to India, which currently produces between 10 percent to 15 percent of its iPhones<\/a>. Over the next three months, Apple expects the \u201cmajority\u201d of U.S. iPhones to come from India, while Vietnam will be responsible for manufacturing \u201calmost all\u201d U.S. iPads, Macs, Apple Watches and AirPod products, said Cook. China will remain the primary hub for Apple\u2019s international production outside of the U.S.<\/p>\n

Cook also emphasized Apple\u2019s investments in U.S. manufacturing. In February, the company announced plans to spend $500 billion over the next five years<\/a> on domestic initiatives, including a new facility in Houston focused on producing servers for A.I. In 2025, Apple will expand several of its U.S. teams, source 19 billion chips from suppliers across a dozen states, and continue producing components like iPhone glass through American suppliers.<\/p>\n

The moves mark a broader strategic shift aimed at mitigating geopolitical risk. \u201cWhat we learned some time ago was that having everything in one location had too much risk with it,\u201d said Cook. \u201cYou could see that kind of thing continuing in the future,\u201d he added, underscoring Apple\u2019s long-term commitment to supply chain resilience.<\/p>\n

\t\t\t\t\"Tim<\/p><\/div>\n