Apple Expects $900M Hit This Quarter Due to Supply Chain Moves Amid Tariffs

Apple is preparing for an additional $900 million in expenses this quarter due to tariffs imposed initially during the Trump administration. While core products like iPhones, Macs, and iPads remain mostly unaffected, the company’s supply chain, especially goods produced in China, is taking a hit.

CEO Tim Cook gave his most detailed update on the issue during Wednesday’s earnings call. “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 $900 million to our costs,” he said. However, he cautioned that this figure shouldn’t be used to predict future quarters: “There are certain unique factors that benefit the June quarter.”

That suggests Apple expects tariff costs could rise in the future, even if it hasn’t confirmed that directly. “For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions,” Cook added.

In response to current conditions, Apple is adjusting its manufacturing footprint. Many iPhones sold in the U.S. will now be produced in India, while most iPads, Macs, Apple Watches, and AirPods for the U.S. market will come from Vietnam. This shift reduces reliance on China and minimizes exposure to rising tariffs.

Apple’s strategy reflects a broader need to stay agile in a volatile trade environment, protecting both margins and operational stability.