It is for seven years by taking an exemption and diversifying the iPhone production efforts outside China, and the tariff effects of $ 900 million in the third quarter are estimated and compared to other companies.
An unusual portion of Apple’s latest call for earnings was that Cook’s leaving the quarter of the quarter, and instead of presenting what he called color in the future. Indeed, he was talking about the tariffs introduced in the quarter but which were estimated to have an impact on Apple sales in the 1st quarter.
Cook said that Apple used a “a leading structure” approach to import more imports before the tariff announcement for the third quarter. Although Trump does not comment on the unexpectedly higher seriousness of his tariffs, he said Apple predicts that “tariffs will add $ 900 million to our costs for the third financial quarter”.
One of the analysts commented on the question of following it, and it was clearly surprised by the relatively low impact against those expected.
Anyway, before the tariffs were announced, Apple had clearly expecting in the first quarter. Later, after the end of the quarter, the tariffs turned out to be extraordinarily higher than expected, and initially Apple had to believe that it was subject to full tariff costs.
Although not especially for Apple, perhaps there is an exemption that gives the company a great break. Trump later rejected that it was an exemption and made it temporarily and said that Apple would be under a different “Aquarius” tariffs after a semiconductive investigation.
Although Trump took one in the first period, Apple cannot rely on exemption. Cook, although the majority of Apple’s products are exempt, 145% Chinese tariff still means “some US Applecare and accessory businesses”. This means that service parts, iPhone cases and the like will be beaten.
It is then important that the exemption is temporary because Cook will only talk about the June quarter. This is the last quarter before the release of the iPhone 17 series – these new models will be the biggest demand in the next two quarters.
Therefore, while Trump changes his mind over and over again, it is likely to end Apple’s tariff exemption until then. Regardless of the tariffs, the most intense iPhone will hit Apple during sales.
However, even in June, Apple tried to reduce the tariff effect by re -guiding the delivery line. From now on, Apple plans to import more iPhones from India instead of China.
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“For the June quarter, we expect the majority of iPhones sold in the United States to be the origin of India,” and Vietnam, almost all iPad, Mac, Apple Watch and Airpods products sold in the United States. “
Apple cannot avoid tariffs
Trump’s “mutual” tariffs are valid for every country where Apple works. Therefore, if temporary exemption is removed, Apple does not receive a free transition to import from India – even if it is possible to make all iPhones there.
This is not possible now and will never happen. Cook, even if he framing Apple’s position as well as possible, he was still forced to refer to the “majority” of the iPhones in India.
There will be iPhones imported from China to the USA and will always be. Apple cannot be completely divorced from China.
As a result, if the exemption was removed and Trump continued with an additional fee of 145%, Apple would hit it. In fact, it is impossible to predict how Trump will change his next idea, but Apple needs to be prepared for the worst situation.
So there will be iPhones imported from China and Cook says that the $ 900 million figure depends on that there is no change. It is not possible to calculate what could happen today.
“I don’t want to guess the future because I’m not sure what will happen in tariffs and [semiconductor] The investigation continues, “he said.
“You know, it’s hard to guess beyond June,” he added before repeating that even the June quarter was not certain.
Apple’s global spending to minimize tariffs
What is certain is that the supply and delivery lines are already an expensive task to ensure that the United States is mostly made of Indian -made iPhones. Cook, “China’s total product sales outside the US will continue to be a origin country for the majority of products,” stating that the change pointed out.
Apple is not even close to completing its plans to reconstruct delivery lines. Some of them have already been paid and some have not yet arrived, the cost of these moves will not fall into the June quarter.
However, despite the change in this large global supply line and despite the current exemption, Apple is still in a hook for $ 900 million due to these tariffs. It could have been much worse, and it was expected to be about 10 times in the third quarter.
And this is just the quarter before the next iPhone launch, just for the June quarter.
In the past, Apple’s latest iPhones were always built in China and because of the complexity of production, other countries tended to work on older models. As of October 2024, the iPhone 17 models are developed in India.
As Tim Cook said, half of the iPhones sold in the United States in a quarter were made in India.
June is just the quietest iPhone quarter
However, investment company Morgan Stanley estimated that Apple could produce high storage models in China. Reasoning is that Apple’s margins on these models may be sufficient to pillow the tariff effect.
Apple has a limit, no matter what it does to reduce tariff costs. Usually for the quietest June quarter, Apple says it will still be $ 900 million – so it doesn’t predict what the tariff effect will be in September and December quarter.
