Apple says Trump’s tariffs will boost costs by $900mn in June quarter

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Tim Cook, CEO of Apple, warned that president Donald Trump’s tariff will increase the costs by $ 900 million per quarter until the end of June, which represents the latest sign of how successive throughout American companies.

“On the assumption of the current global tariff rates … they do not change to the quarter of the quarter, and no new tariff is added, and we appreciate the effect to add 900 million dollars to our costs,” Cook said in a call with analysts on Thursday evening.

But he said that the unconfirmed tariff environment made “very difficult to predict after June” how the fees will affect the Apple costs. Apple shares decreased by approximately 4 percent in trading after Thursday hours.

Cook comments are the latest sign of how Trump’s drawings have already affected commercial partners on the largest companies in the United States. On Thursday, giant technology colleagues added “tariff and trade” policies to the list of factors that pose a threat to their profits, while McDonald’s said that economic tensions were weighing its customers.

On April 2, Trump announced highly “mutual” definitions of a number of countries. While the United States has temporarily gave smartphones its “mutual” tariff of 125 percent on China, Apple is still affected by a 20 percent tariff for Chinese imports.

Cook noted that at the quarter until the end of June, “we expect the majority of the iPhone devices sold in the United States of India as its original country.” He said that Vietnam will provide Mac, Watch and AirPods products for the United States, while China will remain responsible for the “vast majority” of product sales outside the United States.

“What we learned some time ago is that having everything in one place had a great danger to him, and therefore we have over time, with certain parts of the supply chain, not the whole thing … open new sources of supply,” said Cook. “You can see this type of things continuous in the future.”

The Financial Times said last week that Apple plans to change the United States’ iPhone -sold group to India as soon as next year. However, any separation of the Apple supply chain from China is at risk of a possible political reaction in the country, which is still its third largest market after the United States and Europe.

Jane Monster at Deepwateer Asset Management said that Apple’s inability to predict the effect of customs tariffs that exceed the first half of this year was a source of concern for investors.

“The annoying question returns: What does that mean to the back half of the year?” “Every company will have to deal with it … but Apple has the most difficult problem in anyone,” he said.

Despite the warning, Apple said on Thursday that the demand for iPhone devices remained strong early in 2025.

The company has reported revenues of $ 95.4 billion for the quarter ending on March 29, an increase of 5 percent on an annual basis and more than 94.6 billion dollars. The net income reached 24.8 billion dollars, and it was slightly overburdened by estimates of 24.5 billion dollars and an increase of 5 percent in the same period for the previous year.

IPhone revenues, the main product of Apple, amounted to $ 46.8 billion, an increase of 2 percent on an annual basis.

China’s revenues decreased slightly to $ 16 billion, a decrease of 2.4 percent, reflecting the competitive challenge faced by Apple from local smart phone makers in the last quarters. Its service work, which includes the application store, iCloud and Apple Pay, continued to show strong growth, increasing by 12 percent to $ 26.6 billion.

There was no sign of a short -term height in consumer requests to introduce April tariff.

“As for the quarter of March, we do not think we have seen any strong evidence of the cloud request that affected our results,” said Barrick.

The Apple Board of Directors approved an increase of 4 percent in its profits and up to $ 100 billion in shares re -purchases, which is just below $ 110 billion than the previous year.