Apple Projects $900 Million Tariff Impact for Q3 2025
Apple CEO Tim Cook addressed the impact of tariffs during the company's Q2 2025 earnings call. He estimated a $900 million impact on Q3 costs, assuming current tariff rates remain unchanged. However, Cook emphasized the uncertainty surrounding future quarters due to the evolving nature of U.S. trade policy.
Production Diversification Offers Some Relief
While the March quarter saw limited tariff impact, Cook cautioned against extrapolating this to future quarters. He cited "unique factors" benefiting the June quarter. Apple's production diversification strategy, with iPhones sourced from India and other products from Vietnam, helps mitigate the tariff impact.
In an interview with CNBC, Cook downplayed the overall impact of tariffs, highlighting this diversified production approach.
Uncertainty Clouds Future Projections
When pressed for details on future quarters, Cook stated, "I don't want to predict the future, because I'm not sure what will happen with the tariffs." He acknowledged his involvement in ongoing tariff discussions, referencing a prior meeting with President Trump where iPhones were excluded from recent trade policy changes.
“For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates," Cook reassured investors. "We remain confident that we will continue to build the world’s best products and services, confident in our ability to innovate and enrich our users’ lives, and confident that we can continue to run our business in a way that has always set Apple apart.”
