In March 2025, throughout the earlier earnings name, Cook dinner predicted that Apple would spend $900 million on tariffs within the quarter that resulted in June. On yesterday’s name, he stated that the corporate has spent round $800 million throughout the June quarter and expects a price of over $1 billion within the present quarter, experiences The Verge. That may add an additional $1.9 billion spent on tariffs in solely six months.
For the September quarter, assuming the present international tariff charges, insurance policies, and functions don’t change for the stability of the quarter and no new tariffs are added, we estimate the impression so as to add about $1.1 billion to our prices.
Tim Cook dinner, CEO of Apple, July 31, 2025
President Trump’s sweeping tariffs affected just about all Apple gadgets offered within the US. Many of the iPhones offered in America are manufactured in India, whereas Macs, iPads, and Apple Watches are made in Vietnam, in line with Tim Cook dinner.Earlier this yr, Trump threatened to impose a “tariff of at the very least 25%” on each iPhone not constructed within the US. The president has lengthy been pushing Apple to maneuver a few of its manufacturing to the US.
Tim Cook dinner was cautious to make clear that the predictions is likely to be imprecise. He careworn that “many components may change, together with tariff charges.”
Whereas Samsung hasn’t been talked about by President Trump, it’s additionally being affected by tariffs, albeit not as closely as Apple. Samsung moved the manufacturing of its Galaxy telephones out of China way back.
Apple’s stellar monetary outcomes are proof that tariffs and the associated value will increase are unlikely to have an effect on the corporate. Given how lengthy the iPhone’s value has remained virtually unchanged, I don’t suppose a $50 enhance would scandalize anybody. Except tariffs spiral fully uncontrolled, Apple must be advantageous. The corporate sells tens of thousands and thousands of iPhones per quarter, so the modest enhance wouldn’t solely offset the $2 billion invoice but in addition flip it right into a revenue achieve. That’s why I wouldn’t fear about Apple.
