Apple, one of the companies most affected by the tariffs imposed by Donald Trump, sent a notice to its customers to clarify the impacts these taxes will have on its prices.
On May 1, Apple confirmed that it is being heavily impacted by the ongoing trade war, caused by the tariffs Donald Trump imposed on imported products.
The tech company noted that the tariffs would result in an increase of $900 million in costs by the end of the second quarter of the year, which runs until June.
However, Tim Cook, Apple’s CEO, assured that the company will take steps to ensure that these additional costs are not entirely passed on to customers.
Cook said that Apple faced “limited impact” from the tariffs during the second quarter due to changes in its supply chain and inventory.
“Assuming the current global tariff rates, policies, and applications remain unchanged for the rest of the quarter, and no new tariffs are added, we estimate that the impact will add $900 million to our costs.”
He added that most of the iPhones sold in the U.S. will come from India, and most of the iPads, Macs, and Apple Watches will come from Vietnam.
This is because the company has invested more money to ensure its products are manufactured in countries outside of China. “We have a complex supply chain,” Cook said.
“There are always risks in the supply chain. What we learned some time ago is that having everything in one place carried a lot of risks,” the CEO explained.
Despite these strategies, Apple remains one of the main companies affected by the tariffs. Therefore, experts still suggest that customers will also feel the impact.
Although not entirely, as Cook explained, iPhones are expected to experience a significant price increase. Market analysts suggest that $1,000 Apple phones will soon be a thing of the past.
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