Tech
Tim Cook: Apple faces a $1.1 billion tariff bill this quarter
Apple is facing high tariff costs in the current quarter, projected to reach a whopping $1.1 billion.
The company's CEO Tim Cook shared the projections, based on current rates and policies, with investors during an earnings call on Thursday. The hike comes amid a continuous trade war between China and the U.S. government.
In the quarter that ended in June, tariffs cost Apple $800 million, which was actually lower than initially anticipated. "The bulk of the tariffs that we paid were the IEEPA [International Emergency Economic Powers Act] tariffs that hit early in the year, related to China," Cook said, according to The Verge.
"There are many factors that could change, including tariff rates," the CEO continued.
In the past, President Donald Trump has specifically threatened Tim Cook and Apple with higher tariffs on iPhones, part of his pressure campaign to move iPhone production to the United States. Experts say that is extremely unlikely to happen, as the U.S. lacks the infrastructure to manufacture flagship smartphones.
In the Thursday earnings call, Cook also shared that the company set a "June quarter revenue record", with growth across its iPhone and Mac products and services divisions. He said the results were "better than expected."
As Mashable reported on Friday, despite economic uncertainty, a negative July jobs report, and the looming threat of tariffs, tech companies like Apple, Meta, and Reddit are still reporting strong revenue this quarter.
