Apple CEO Tim Cook appeared to have uninterrupted tariff issues during a quarterly revenue call yesterday (May 1). Cook settled growing concerns about U.S.-China trade tensions, and he revealed that current tariffs could lose $900 million in iPhone manufacturers between April and June.
“Assuming current global tariff rates, policies and applications will not change the balance for the quarter, nor will new tariffs be added, we estimate the impact will be an increase in fees of $900 million,” Cook told analysts.
“In our case, we will manage the company the way we do and focus on long-term investments with thoughtful and intentional decisions and the possibilities we create,” he added.
Apple has made the vast majority of iPhones in China and is in trouble in the escalation of the trade war between the United States and China. Although consumer electronics have been temporarily exempted from the 125% reciprocal tariff proposed by President Donald Trump, Apple products still face a 20% tax, and more taxes may be on the way.
Cook acknowledged that Apple could not predict tariff charges for the current quarter due to ongoing uncertainty in trade policies. However, for the time being, he said the company has not made any pricing changes yet and has not seen a surge in consumer demand driven by concerns about future price increases.
Apple has achieved high results in all markets outside China. In the first three months of 2025, total revenue rose 5% year-on-year to $95.4 billion, beating Wall Street expectations. iPhone sales reached $46.8 billion, up 2% from the same period last year, while MAC and iPad sales rose by 7% and 15% respectively.
Accelerate the transfer of manufacturing to India
In recent years, Apple has reduced its dependence on China by shifting its product production to India, which currently produces 10 to 15% of iPhones. Cook said that over the next three months, Apple expects most of the U.S. iPhones are from India, while Vietnam will be responsible for making “almost all” of the U.S. iPad, Mac, Apple Watches and Airpod products. China will remain the main hub for Apple's international production outside the United States
Cook also highlighted Apple's investment in the U.S. manufacturing industry. In February, the company announced plans to spend $500 billion on domestic plans over the next five years, including a new factory in Houston focused on producing servers for AI by 2025, Apple will expand its several U.S. teams, 19 billion chips from U.S. suppliers, and continue to produce components such as iPhones through U.S. suppliers.
This move marks a broader strategic shift to mitigate geopolitical risks. “What we learned before is that the risk of putting everything in one place is too great,” Cook said, adding, “You will see this going on in the future.” He highlighted Apple’s long-term commitment to supply chain resilience.
