Apple says tariffs will cost it at least $900 million this quarter
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Summary
Apple CEO Tim Cook stated on an earnings call that the company estimates the recent US-China trade tariffs will add $900m to its costs this quarter.
He also revealed where the company’s products will be originating for US consumers in Q2 2019.
The majority of iPhones sold in the US will have India as their country of origin, and Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products.
Other countries such as China and Malaysia will continue to be the countries of origin for accessories such as AirPods, AirPods deluxe and Apple Watch bands.
However, most of Apple’s range is not currently subject to global reciprocal tariffs, as the US Commerce Department has initiated a Section 232 investigation into imports of semiconductors.