Apple Warns of $900M Tariff Costs Next Quarter

Apple reported quarterly revenue of $95.4 billion, surpassing expectations largely due to strong iPhone sales, while warning of a $900 million cost increase from U.S. tariffs expected in the June 2025 quarter. CEO Tim Cook explained that the tariff impact was limited in the March quarter thanks to supply chain optimizations, but uncertainty remains for future periods. To mitigate exposure, Apple has shifted most iPhone production for the U.S. market to India and sources iPads and other devices from Vietnam, though most international products are still produced in China. Cook cautioned that the $900 million estimate assumes no changes in global tariffs and is not indicative of ongoing costs. Despite tariff headwinds, Apple recorded all-time high services revenue, but China sales slightly missed forecasts. The company’s stock declined after the earnings call amid continued investor concerns over trade policy and future expenses.