Apple Braces for $900M Hit Amid Trump's Trade War
Apple is feeling the heat of US tariffs this quarter, expecting an estimated $900 million in added costs, according to CEO Tim Cook. The impact from January to March was minimal, as major Trump reciprocal tariffs weren’t implemented until April.
iPhones from India, Other Devices from Vietnam
To mitigate the impact, Apple is aggressively shifting its supply chain. Tim Cook announced that the majority of iPhones sold in the US this quarter will originate from India. Additionally, Apple is moving production of iPads, Macs, Apple Watches, and AirPods bound for the US to Vietnam.
Despite the challenges, Apple’s financials remain solid. The company reported a 5% year-over-year increase in revenue for the March quarter, totaling $95.4 billion.
$500B US Investment Not For iPhone?
Meanwhile, Apple’s $500 billion US investment is not intended for iPhone manufacturing. Instead, the funds will go toward expanding Apple’s AI capabilities, leaving the dream of US-assembled iPhones largely out of reach.
As Apple continues to juggle shifting geopolitics and global supply chain challenges, its ability to adapt quickly will be critical in maintaining its competitive edge.