Apple CEO Tim Cook says tariffs to add $900M in costs in Q3, but future uncertain

Apple CEO Tim Cook offered the company’s archetypal comments connected the interaction of President Trump’s tariffs during Thursday’s second-quarter net telephone with investors. While the iPhone shaper saw lone “limited impact” from tariffs successful the March quarter, Cook said Apple couldn’t forecast what that would mean for the coming quarter. However, if things remained the same, the institution estimates tariffs volition lone adhd $900 cardinal to its costs successful Q3.

The quality was a alleviation to investors, with 1 adjacent calling it a “pretty bully outcome.” However, investors were inactive acrophobic arsenic to what the adjacent quarters could hold, fixed the accelerated changes to U.S. commercialized argumentation successful caller weeks.

Cook told investors Apple’s estimation was meant to supply immoderate colour and would lone clasp if the existent planetary tariff rates, policies, and applications didn’t alteration for the equilibrium of the 4th and if nary caller tariffs were added.

He besides warned that this estimation shouldn’t beryllium utilized to task the interaction of tariffs successful aboriginal quarters, arsenic determination are “unique factors” that payment the June quarter.

In an interrogation with CNBC, Cook had downplayed the interaction of tariffs, noting that Apple is already sourcing astir fractional its iPhones for the U.S. from India, and astir different products for the U.S. marketplace from Vietnam.

When pressed by 1 capitalist to connection much details connected the June 4th and beyond, Cook said, “I don’t privation to foretell the future, due to the fact that I’m not definite what volition hap with the tariffs.”

Cook added that helium wouldn’t privation to foretell the premix of accumulation successful the future, but noted that helium was precise engaged with the tariff discussions. (That overmuch was already clear. Shortly aft a gathering with President Trump, Apple’s iPhones were spared from the commercialized argumentation changes that could person sent iPhone pricing soaring.)

“For our part, we volition negociate the institution the mode we ever have, with thoughtful and deliberate decisions, with a absorption connected investing for the agelong term, and with dedication to innovation and the possibilities it creates,” Cook said. “As we look ahead, we stay confident, assured that we volition proceed to physique the world’s champion products and services, assured successful our quality to innovate and enrich our users’ lives, and assured that we tin proceed to tally our concern successful a mode that has ever acceptable Apple apart.”