Apple Faces $900 Million Hit From Trump Tariffs in Next Quarter đ
Apple has revealed that the tariffs imposed by the Trump administration could cost the company about $900 million in the April to June quarter of 2025. While it's less than 1% of the companyâs expected $95.4 billion in revenue, they're already taking action to soften the blow.
Production Shifts and Long-Term Strategy
To deal with the extra costs, Apple is shifting production of its devices to countries with lower tariffs. Most iPhones sold in the US during this quarter will be made in India, while iPads, Macs, Apple Watches, and AirPods will be made in Vietnam. This move is meant to reduce the financial impact and spread out the companyâs supply chain.
Market Reaction
Even with all these changes, Appleâs stock dropped nearly 3% in pre-market trading after the tariff cost news came out. Despite beating revenue and profit expectations, uncertainty about tariffs and international production is still shaking investor confidence.
Apple is keeping a close eye on US trade policies and exploring options to balance global production and costs. At the same time, theyâre investing in innovation and expanding their services lineup to drive long-term growth.