Apple has revealed it paid $900 million in tariffs last quarter, but CEO Tim Cook says customers don’t need to worry about price hikes — at least for now.
Announcing its solid first-quarter financials, Apple reported revenue of $95.4 billion and record earnings per share of $1.65. Despite the massive tariff bill, one analyst on the earnings call described the impact on Apple’s bottom line as surprisingly mild, considering the company’s vast global operations.
The biggest question lingering for both consumers and tech startups — many of whom prefer to outfit employees with Macs — is whether Apple plans to pass these costs on through price increases. Tim Cook addressed this directly on the call, stating, “We have nothing to announce at this time” regarding any price changes.
Cook outlined how Apple has been strategically shifting production to limit its exposure to tariffs. A growing share of iPhones is now manufactured in India instead of China, and more Mac production has been moved to Vietnam. Most China-made devices are now shipped to customers outside the U.S., further reducing tariff liabilities.
Interestingly, Apple’s most significant tariff hit has come not from its flagship products, but from AppleCare and accessories — spare parts, iPhone cases, and similar items — which Cook said faced tariffs as high as 145%. Still, he indicated that Apple is working to absorb these costs for now.
Apple’s tariff exposure could have been even worse. Products like iPhone, Mac, iPad, Apple Watch, and Vision Pro currently avoid global reciprocal tariffs as the U.S. Commerce Department investigates how such measures impact semiconductor imports and related goods.
When asked whether consumers or businesses should rush to purchase Macs before potential price hikes, Cook emphasized that Apple remains actively engaged in tariff negotiations and is doing everything possible to manage costs. “We believe in engagement and will continue to engage. On the pricing piece, we have nothing to announce today,” Cook assured.