Apple is spending rather a lot on President Donald Trump’s tariffs. Throughout an earnings name on Thursday, Apple CEO Tim Cook dinner stated the duties may add $1.1 billion to its prices through the September quarter.
Cook dinner says Apple has already spent round $800 million through the June quarter, which is lower than the $900 million that the corporate predicted in Could. “The majority of the tariffs that we paid have been the IEEPA [International Emergency Economic Powers Act] tariffs that hit early within the yr, associated to China,” Cook dinner stated.
Trump’s sweeping tariffs have impacted all of Apple’s gadgets, that are primarily manufactured in China, India, and Vietnam. Cook dinner stated the “majority” of iPhones offered within the US are manufactured in India, whereas most Macs, iPads, and Apple Watches come from Vietnam. Trump has threatened to focus on Apple with even greater tariffs if the corporate doesn’t transfer a few of its manufacturing to the US.
“There are a lot of components that might change, together with tariff charges,” Cook dinner notes. Regardless of considerations surrounding tariffs, the corporate’s quarterly income jumped 10 % to $94 billion between April and June, whereas iPhone and Mac gross sales stay robust.