Apple CEO Tim Cook Warns Of $900 Million Tariff Impact In June Quarter, Expects Majority Of iPhones Sold In US To Be Made In India
From Yahoo Finance: 2025-05-02 16:37:00
During Apple Inc.’s fiscal second-quarter earnings call, CEO Tim Cook revealed a $900 million cost impact in the June quarter due to tariffs. The majority of iPhones sold in the U.S. will have India as their country of origin, while Vietnam will produce iPads, Macs, Apple Watches, and AirPods for the U.S.
Apple’s shift in production locations comes amidst increasing tariffs on Chinese imports. Most of the company’s tariff exposure is related to a 20% tariff on products with China as their country of origin.
Despite current global reciprocal tariffs not impacting Apple’s main product lines, the company anticipates a $900 million cost impact assuming no changes in tariff rates for the quarter. Apple exceeded Wall Street revenue expectations in the fiscal second quarter and forecasts revenue growth in the low-to-mid-single-digit range for the June quarter.
Previously, Senator Elizabeth Warren raised concerns about Cook seeking tariff exemptions for Apple products. Potential tariffs on Chinese imports could have raised iPhone prices to $3,500, significantly impacting Apple’s supply chain and profit margins. Wedbush analyst Dan Ives warned of this potential price increase.