Apple CEO Tim Cook detailed during a press conference on Wednesday how the company is responding to US tariffs imposed by President Donald Trump, estimating the potential impact on the company's business at at least $900 million this quarter, UNN writes, citing The Verge.
Assuming that current global tariff rates, policies and applications do not change by the end of the quarter and no new duties are added, we estimate the impact on increasing our costs by $900 million.
"This estimate should not be used for forecasts for future quarters, as there are certain unique factors that contribute to the June quarter," he explained.
When the conversation moved to the Q&A section, Cook said a little more: "In the June quarter, we expect that most iPhones sold in the US will have India as their country of origin, and Vietnam will be the country of origin for almost all iPads, Macs, Apple Watches and AirPods also sold in the US. China will still be the country of origin for the vast majority of total product sales outside the US."
"In the June quarter, as I said in my opening remarks, we estimate the impact - assuming current global tariff rates, policies and applications do not change by the end of the quarter - $900 million on our costs. I wouldn't want to predict the production structure in the future, but I would like to give you clarity on the June quarter," Cook said.
As the publication writes, "it sounds like Apple believes that the cost of tariffs may increase when these "unique factors" that were in effect in the June quarter cease to be in effect, but the company has not yet confirmed this." "For our part, we will manage the company as we always have, with thoughtful and balanced decisions," Cook said.