Customs costs for Apple projects reach $1.1 billion next year

Tim Cook said that the January-September quarter is projected to cost Apple $1.1 billion in the July-September quarter, CEO Tim Cook said in a company’s revenue call with investors on Thursday.

These cost forecasts based on current rates and policies could be lower than expected, as in the last quarter. Apple incurred approximately $800 million in tariff-related expenses in the June quarter. More than the 900 million dollar estimate The company shared it in May.

Cook said most of the tariffs imposed on apples stem from the International Emergency Economic Force Act (IEEPA). Earlier this year, and amid the brewing trade war, the US government and China agreed to a 30% tariff. Imports from China. The trade agreement reduced “mutual” tariffs from 125% to 10% (Furthermore, 20% obligation (against China related to fentanyl) will be standing until August 12th.

Sales growth suggests that fear of tariffs can help fuel sales, but cooking downplayed the “pull-forward” effect, noting that consumers are more motivated by “product strength.”

“Looking at the iPhone, the 16 families have grown double digits, in contrast to the 15 families in the same period last year,” Cook said in the phone. “And we set up an upgrade record… I think it’s directly because of the strength of the product.”

iPhone sales increased 13% year-on-year and were generated $44.5 billion in revenue – Almost half of the company’s overall total revenue this quarter reached $94 billion.

Still, even if Apple moves its manufacturing strategy to a country with lower tariffs, tariffs could still impact it and continue to do so.

Apple devices are mainly manufactured in India, China and Vietnam. Almost half of iPhones sold in the US are produced in India, while Macs, iPads and watches for US customers are made in Vietnam. Both India and Vietnam are exposed to 25% and 20% tariffs, respectively.

President Trump previously expressed his disappointment after Apple moved its supply chain focus to India and threatened the company with 25% tariffs unless Apple moves iPhone production to the US.

Cook reiterates Apple’s commitment to the US in Thursday’s invocation of investors, saying the company has committed 500 billion dollar investment Over the next four years, we will build chips and semiconductors in the United States and across the country.