Apple CEO Tim Cook announced that tariffs could increase the company’s costs by $900 million this quarter.
The figures were discussed as the tech giant begins relocating iPhone production for U.S. sales from China to India.
Today, the company reported that its revenue increased by 5% in Q1, reaching $95.4 billion.
In an earnings call, Cook told investors: “Assuming there are no changes to the current global tariff rates, policies, or applications for the remainder of the quarter, and no new tariffs are introduced, we estimate this will add $900 million to our costs.”
Cook anticipates that “the majority of iPhones sold in the US will list India as their country of origin.”
The move to diversify Apple’s global supply chain away from China highlights the significant effects of US President Donald Trump’s steep 145% tariffs on Chinese imports.
Cook stated that although smartphones and other electronic devices containing semiconductors are exempt from “reciprocal” tariffs on China, Apple is anticipating additional costs due to the 20% minimum tariff on products manufactured in China.
Apple’s stock fell nearly 4% following Cook’s announcement.
By CEO NA Editorial Staff
