Tariffs are expected to cost Apple $1.1 billion in the upcoming quarter. Past costs were lower than estimated, with $800 million incurred in the last quarter. Most tariffs arise from the International Emergency Economic Powers Act (IEEPA), influenced by a U.S.-China trade agreement imposing a 30% tariff on imports from China. iPhone sales grew significantly, contributing $44.5 billion to Apple's total revenue, which reached $94 billion this quarter. Manufacturing is primarily in India, China, and Vietnam, facing varying tariff rates.
Tariffs are projected to cost Apple $1.1 billion in the July-to-September quarter, an uptick from the previous period. Most tariffs stem from the International Emergency Economic Powers Act (IEEPA). Sales of the iPhone rose 13% year-over-year and generated $44.5 billion in revenue - nearly half of the entire company's total revenue this quarter, which reached $94 billion.
Cook stated that while sales growth suggests fear of tariffs helped fuel sales, consumers were more motivated by the strength of the product.
Apple's incurred tariff-related costs stood at about $800 million for the June quarter, less than the $900 million estimate the company shared in May.
Apple devices are mainly manufactured in India, China, and Vietnam. Nearly half the iPhones sold in the U.S. are produced in India, while Macs, iPads, and watches for U.S. customers are made in Vietnam.
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