Apple is being forced to spend because of US President Donald Trump’s tariffs but it hasn’t stopped the Cupertino- based company from reporting its fastest quarterly revenue growth in more than three years: $94 billion, up 10 per cent year-on-year. iPhone sales surged 13 per cent from a year ago to $44.6 billion.
Company CEO Tim Cook, while posting the blockbuster fiscal third quarter earnings buoyed by success in countries such as China and India, said: “For the June quarter, we incurred approximately $800 million of tariff-related costs. For the September quarter, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add about $1.1 billion to our costs.
“This estimate should not be used to make projections for future quarters, as there are many factors that could change, including tariff rates.”
As India weighs options to appease the White House after Trump’s 25 per cent tariff threat on Thursday, Apple’s iPhone exports to the US from India are likely to remain untouched for now.
The Trump administration in April exempted smartphones, computers, and other electronics from reciprocal tariffs.
The US Commerce Department is looking at sectors deemed essential to national security, such as semiconductors, under Section 232 in the Trade Expansion Act. Until this is completed, no levies on smartphone exports to the US are expected.
Apple boosted its production in India over the last few years after severe pandemic-induced restrictions. The country now accounts for more than a fifth of global iPhone production and has overtaken China to become the top exporter of smartphones to the US, according to research firm Canalys.
“We saw iPhone growth in every geographic segment and double-digit growth in emerging markets, including India, West Asia, South Asia, and Brazil,” said Cook. The CEO said the “majority” of the iPhones sold in the US are manufactured in India, and the “vast majority of other products, the Mac and the iPad and the Watch” come from Vietnam.
