Apple CEO Tim Cook Sees $900 Million Hit From Tariffs In June Quarter If Rates Stay The Same
That's not a big hit for the tech giant but Cook cautioned on a call with analysts that 'this estimate should not be used to make projections for future quarters.'
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For the March quarter, he said, 'We had a limited impact from tariffs as we were able to optimize our supply chain and inventory for the June quarter. Currently, 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 most iPhones sold in the U.S. for the current quarter will have India as their country of origin, and Vietnam for iPads, Apple watches and air pods. China would continue to provide the vast majority of total sales of Apple products outside the U.S. The company has moved quickly to expand production in India and Vietnam.
'Obviously, we are very engaged on the tariff discussion,' he added.
PREVIOUSLY: Apple beat on the top and bottom line for its fiscal second quarter ending in March but Wall Street is holding tight for any guidance from CEO Tim Cook on the impact of tariffs on its business. That should come on an earnings call set for 5 pm ET.
The tech giant posted net income of $24.78 billion — up from $23. 6 billion — on revenue of $95.4 billion from $90.7 billion the year earlier. The high-margin Services division, which houses Apple TV+, Apple Music among other platforms, grew 12% but a bit less than the Street anticipated. Apple stock slipped in late trading.
IPhone revenue nosed up 2% to $46.8 billion. Mac revenue grew 7% to $7.9 billion. IPad sales jumped 15% to $6.4 billion
'Today Apple is reporting strong quarterly results, including double-digit growth in Services,' said Cook. 'We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we've cut our carbon emissions by 60 percent over the past decade.'
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