CUPERTINO, Calif. — Apple’s top boss, Tim Cook, dropped a bombshell during the company’s earnings call on May 1, 2025: new U.S. tariffs on foreign imports could slap the tech giant with a staggering $900 million in additional costs for the quarter ending in June. The warning, delivered in Cook’s calm but pointed style, marks the first time Apple has publicly sized up the financial hit from the trade policies looming over its global supply chain.
The tariffs, part of a broader push by the U.S. government to reshape trade with countries like China, where Apple assembles most of its iPhones, iPads, and MacBooks, are set to ripple through the company’s bottom line. Cook, speaking to investors and analysts, didn’t mince words. If the current tariff rates hold steady and no new levies get tacked on, that $900 million figure is what Apple’s staring down, he said. It’s a hefty chunk for a company that reported $94.3 billion in revenue for the same period last year.
Apple’s supply chain is a sprawling web, with components sourced from dozens of countries and final assembly often happening in massive Chinese factories run by partners like Foxconn. Tariffs, which act like taxes on imported goods, could jack up the cost of everything from microchips to glass screens. On April 16, the U.S. Trade Representative’s office confirmed plans to maintain elevated tariffs on Chinese imports, citing the need to protect American industries. That decision, paired with President Trump’s earlier pledges to hike tariffs across the board, has companies like Apple scrambling to figure out their next move.
Cook’s comments come amid growing chatter about how tariffs could force Apple to rethink its pricing. Bank of America analysts estimated back in March that a 9% price hike on iPhones and other products might be needed to offset the trade costs. For consumers, that could mean shelling out hundreds more for a new iPhone 16 Pro Max, which already starts at $1,599. Apple hasn’t confirmed any price increases, but the math isn’t hard to follow.
The tech giant isn’t alone in feeling the squeeze. Other companies reliant on global supply chains—think Samsung, Dell, or even automakers like Ford—face similar headaches. But Apple’s sheer size and visibility make it a lightning rod for scrutiny. Its stock, trading at around $230 per share as of May 1, dipped slightly after Cook’s remarks, though analysts say the market had already priced in some tariff pain.
What happens next depends on Washington. If the government doubles down on its trade stance or slaps on new tariffs, Apple’s costs could climb even higher. For now, Cook’s $900 million warning is a cold, hard number—a glimpse into the real-world fallout of trade wars. The company’s quarterly report, filed with the Securities and Exchange Commission on May 1, backs up the figure, tying it directly to tariff-related expenses.
Apple employs about 147,000 people worldwide and sold 232 million iPhones in 2024. The June quarter, which Cook referenced, typically accounts for roughly 20% of the company’s annual revenue.