Apple announced its quarterly results for the past quarter tonight, followed by a relatively long call with investors, as is customary, where management could Applu ask questions. Given how much the world is talking about Trump's tariffs right now, it probably won't surprise anyone that tariffs are the topic of conversation.
For questions about the impact of tariffs on Apple he revealed Tim Cook specifically, that in the second quarter, tariffs should cost the company around $900 million. And although this burden has not yet been Apple does not reflect in the prices of its products, Cook during a call with investors, he indicated that this may not remain the case forever.
"We are very active on the topic of customs", he said specifically Cook diplomatically and continued: “We have nothing new to announce today regarding pricing. Our team is doing a great job optimizing our supply chain and inventory – and we will continue to do so as long as we can..” In other words, Apple It keeps prices stable for now, but it does not provide a guarantee for the future.
The company is also accelerating the shift of production outside of China – iPhones destined for the US are now being manufactured in India, and other product lines are being moved to Vietnam. But given Trump's unpredictability, it is clear that none of these alternatives are immune to tariffs if the White House decides to AppI want to get even tougher about domestic production.
At least for now, however, the prices of iPhones and other devices remain the same and Apple Apparently, he is not planning to increase prices in the near future. But if Trump starts his tariff madness again, which will make it impossible Applu further "optimization in the supply chain", as the processes boss Apple indicates that prices may of course increase.
Correct: in the first quarter, tariffs cost the company around $900 billion. – I assume it should be 900 million..
They probably didn't pay 10 times more for customs duties than the turnover of the whole company.
Thanks for the warning, you are of course right. 😁 That's how it is when I write an article about billion-dollar profits at one point Applu for Q1 and in the second moment about million-dollar duties.