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Apple projects tariff costs will hit $1.1B next quarter
In a recent earnings call with investors, CEO Tim Cook revealed that the company expects to incur tariffs of approximately $1.1 billion in the July-to-September quarter. This marks an uptick from the previous period, where Apple reported around $800 million in tariff-related costs.
The projected increase is largely attributed to the ongoing trade tensions and tariffs imposed on imports from countries such as India and Vietnam. Notably, nearly half of the iPhones sold in the U.S. are manufactured in India, which is subject to a 25% tariff. Meanwhile, Apple devices bound for U.S. customers that are produced in Vietnam will be charged a 20% duty.
Cook downplayed the idea that tariffs have significantly impacted consumer behavior, citing the strength of the company’s products as the primary driver of sales growth. The CEO emphasized that iPhone sales in particular grew double digits year-over-year, with the 16 family showing significant growth compared to the previous quarter.
Despite this resilience, Cook acknowledged that tariffs will continue to pose a challenge for Apple and the broader industry. In an effort to mitigate these costs, the company has been actively shifting its manufacturing strategy towards countries with lower tariffs.
Source: techcrunch.com
