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American Focus > Blog > Tech and Science > Despite paying $900M in tariffs, Apple’s Tim Cook isn’t announcing price increases — yet
Tech and Science

Despite paying $900M in tariffs, Apple’s Tim Cook isn’t announcing price increases — yet

Last updated: May 1, 2025 7:39 pm
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Despite paying 0M in tariffs, Apple’s Tim Cook isn’t announcing price increases — yet
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Apple Reports $900 Million Tariff Hit in First Quarter Results

Apple announced that increased tariffs cost the company $900 million in the last quarter, alongside its solid first quarter results. While this amount may seem substantial, one analyst on the quarterly earnings call described the impact as surprisingly low, considering Apple’s size and revenue.

The tech giant reported a first quarter revenue of $95.4 billion, with a profit of $1.65 per share, a first-quarter record, despite the tariff payment. This news comes as a relief to many tech users and startups that rely on Apple products, who were concerned about potential price hikes due to tariffs.

During the earnings call, Apple CEO Tim Cook addressed the question of whether ongoing tariffs would lead to increased prices for Apple products. He stated that for the next quarter, price increases are unlikely. Cook explained that Apple is shifting its manufacturing operations to countries like India and Vietnam to mitigate the impact of tariffs, particularly on iPhones and Macs.

One area where Apple felt the biggest hit from tariffs was in its AppleCare and accessories businesses. The tariff rate for these products was at least 145%, significantly impacting the costs associated with spare parts and accessories.

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Cook reassured consumers and startups that Apple is working to minimize costs and influence tariff policies to keep prices stable. He emphasized the company’s engagement in tariff discussions and its commitment to finding solutions to mitigate the impact on its products.

See also  Insulin Isn't Just Made by The Pancreas. Here's Another Location Few Know About. : ScienceAlert

Despite the challenges posed by tariffs, Apple has managed to navigate the situation relatively well, thanks to its strategic manufacturing decisions and ongoing efforts to address tariff-related issues. As the Commerce Department conducts investigations into the impact of tariffs on various products, Apple remains focused on maintaining its pricing strategies.

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