Apple on Thursday reported first-quarter profit above expectations but warned that US tariffs could cost the company and were disrupting its supply chain.
Apple expects US tariffs to cost US$900 million in the current quarter, even though their impact was “limited” at the start of this year, chief executive Tim Cook said on an earnings call.
Cook said he expected “a majority of iPhones sold in the US will have India as their country of origin”, adding that Apple’s products were exempt from Trump’s most severe “reciprocal” tariffs for now.
“We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,” Cook said.
“Assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add US$900 million to our costs.”
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Apple opens its first retail store in India
Apple opens its first retail store in India
Tit-for-tat exchanges have seen hefty US levies imposed on China, with Beijing setting retaliatory barriers on US imports. High-end tech goods such as smartphones, semiconductors and computers received a temporary reprieve from US tariffs.
