Apple is spending loads on President Donald Trump’s tariffs. Throughout an earnings name on Thursday, Apple CEO Tim Prepare dinner mentioned the duties might add $1.1 billion to its prices in the course of the September quarter.
Prepare dinner says Apple has already spent round $800 million in the course of the June quarter, which is lower than the $900 million that the corporate predicted in Could. “The majority of the tariffs that we paid had been the IEEPA [International Emergency Economic Powers Act] tariffs that hit early within the 12 months, associated to China,” Prepare dinner mentioned.
Trump’s sweeping tariffs have impacted all of Apple’s units, that are primarily manufactured in China, India, and Vietnam. Prepare dinner mentioned the “majority” of iPhones offered within the US are manufactured in India, whereas most Macs, iPads, and Apple Watches come from Vietnam. Trump has threatened to focus on Apple with even larger tariffs if the corporate doesn’t transfer a few of its manufacturing to the US.
“There are a lot of components that would change, together with tariff charges,” Prepare dinner notes. Regardless of issues surrounding tariffs, the corporate’s quarterly income jumped 10 p.c to $94 billion between April and June, whereas iPhone and Mac gross sales stay sturdy.
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