Apple, a company in San Francisco, reported a first-quarter profit that was above expectations on Thursday ( May 1 ), but warned that the company’s supply chain was being hampered by US tariffs.
Even though their effect was “limited” at the start of this year, according to general professional Tim Cook, Apple anticipates paying US$ 900 million in the current third.
Cook stated that he anticipated that” the majority of iPhones sold in the US will include India as their country of origin,” noting that Apple’s products were currently excluded from Trump’s most stringent mutual tariffs.
We can’t accurately predict the impact of taxes because we have no idea what might happen in the future before the quarter’s finish,” Cook said. We estimate that the impact will cost US$ 900 million if the recent global tariff rates, policies, and applications remain unchanged for the remainder of the third.
Tit-for-tat markets have seen significant US import taxes levied against China, with Beijing enacting punitive measures against US exports.
US tariffs were temporarily lifted for high-end technology goods like smartphones, semiconductors, and computers.
According to Canalys research manager Le Xuan Chiew,” Apple actively built up inventory back of expected tariff policies.” Apple is likely to shift more of its production to India as a result of continuous changes in bilateral tariff policies to lessen risk in the future.
Production in India increased toward the end of the quarter, according to Canalys, while handsets produced in mainland China also account for the majority of US supplies.