SAN FRANCISCO: Apple on Thursday (Could 1) reported first-quarter revenue above expectations however warned that US tariffs may price the corporate and was disrupting its provide chain.
Apple expects US tariffs to price US$900 million within the present quarter, despite the fact that their influence was “restricted” at first of this yr, chief government Tim Prepare dinner mentioned on an earnings name.
Prepare dinner mentioned he anticipated “a majority of iPhones bought within the US may have India as their nation of origin,” including that Apple’s merchandise have been exempt from Trump’s most extreme reciprocal tariffs for now.
“We aren’t capable of exactly estimate the influence of tariffs, as we’re unsure of potential future actions previous to the top of the quarter,” Prepare dinner mentioned. “Assuming the present world tariff charges, insurance policies and functions don’t change for the steadiness of the quarter and no new tariffs are added, we estimate the influence so as to add US$900 million to our prices.”
Tit-for-tat exchanges have seen hefty US levies imposed on China, with Beijing setting retaliatory limitations on US imports.
Excessive-end tech items reminiscent of smartphones, semiconductors and computer systems acquired a short lived reprieve from US tariffs.
“Apple proactively constructed up stock forward of anticipated tariff insurance policies,” mentioned Canalys analysis supervisor Le Xuan Chiew. “With ongoing fluctuations in reciprocal tariff insurance policies, Apple is more likely to additional shift US-bound manufacturing to India to scale back publicity to future dangers.”
Whereas iPhones produced in mainland China nonetheless account for almost all of US shipments, manufacturing in India ramped up towards the top of the quarter, in response to Canalys.
