Apple CEO Tim Cook has warned that US tariffs could add $900 million in costs during the third quarter, casting a shadow over otherwise strong Q2 earnings.
The comments, made during Apple’s earnings call on Thursday, marked the company’s first public remarks on the impact of President Trump’s evolving trade policies.
Cook said Apple experienced only “limited impact” from tariffs in Q2 but emphasized that the Q3 estimate is based on current rates and could shift quickly.
“I don’t want to predict the future, because I’m not sure what will happen with the tariffs,” Cook told investors.
Apple reported $95.4 billion in revenue for the March quarter, up 5% year-over-year, and earnings per share of $1.65, an 8% increase. Services revenue grew 12% to $26.7 billion, driven by the App Store and Apple TV+.
However, shares fell more than 4% post-earnings amid concerns over rising costs, falling China sales, and perceived slow progress in AI.
China sales declined 2.3%, as local rivals Huawei and Xiaomi gained market share.
Meanwhile, Apple’s delay in launching advanced AI features, including a revamped Siri now postponed to 2026, has drawn criticism from analysts.
In a CNBC interview, Cook noted Apple is reducing its reliance on China by sourcing iPhones from India and other products from Vietnam. Still, he stressed that future cost impacts are uncertain.
“This is a volatile environment,” said Forrester analyst Dipanjan Chatterjee. “Apple’s brand strength is holding, but it can’t afford to lag in AI or ignore rising costs.”
Cook reaffirmed Apple’s commitment to long-term strategy and innovation but acknowledged that evolving global policies could reshape near-term operations.
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