Apple CEO Tim Cook commented on the impact of President Trump's tariffs on a second-quarter earnings call with investors on Thursday. While iPhone manufacturers only saw "limited effects" from tariffs in the March quarter, Cook said Apple could not predict what this would mean for the upcoming quarter. But if the situation remains the same, the company estimates that tariffs will only increase costs by $900 million.
The news made investors feel relieved and even called it a "quite good result." But, given the rapid changes in U.S. trade policy in recent weeks, investors are still worried about what can be achieved in the coming quarter.
Cook told investors that Apple's estimates are intended to provide some color that can only be maintained if current global tariff rates, policies and applications do not change balances for the quarter and no new tariffs are added.
He also warned that the estimate should not be used to predict the impact of tariffs in the future quarter, as there are "unique factors" that benefit from the June quarter.
In an interview with CNBC, Cook downplayed the impact of tariffs and noted that Apple has provided about half of the iPhone to the United States from India, as well as most other products from the Vietnamese U.S. market.
When Cook provided more details in the June quarter and beyond, Cook said: “I don’t want to predict the future because I’m not sure what will happen to the tariffs.”
Cook added that he did not want to predict future production portfolios, but noted that he was very involved in tariff discussions. (This is already clear. Apple’s iPhone is exempt from changes in trade policy shortly after meeting with President Trump, which could cause iPhone prices to soar.)
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Book now“For our part, we will invest in a long-term way with thoughtful and deliberate decisions and committed to innovation and the possibilities of creation,” Cook said. “As we look forward, we remain confident that we will continue to build the best products and services in the world, with confidence in our ability to innovate and enrich our users’ lives, and with confidence that we can continue to do business in ways that always set Apple apart.”