Apple has managed tariffs so far, but Cook says it's tough to predict beyond June

Core Viewpoint - Apple is navigating the impact of tariffs imposed by the Trump administration, with CEO Tim Cook indicating a limited effect so far but predicting additional costs in the upcoming quarter. Group 1: Tariff Impact - Apple experienced a "limited impact" from tariffs between January and March, but anticipates about $900 million in additional costs for the current quarter ending in June [2] - The majority of Apple's products are currently not subject to the tariffs, but Cook expressed uncertainty about future tariff changes beyond June [3][4] - Apple shares fell by as much as 4% in extended trading due to the lack of clarity regarding future tariffs, despite reporting better-than-expected revenue and strong sales growth for iPads and Macs [3] Group 2: Supply Chain Adjustments - Apple has optimized its supply chain and inventory management to mitigate tariff impacts, sourcing products from India and Vietnam, which currently face 10% tariffs [5] - The company is still subject to a 145% tariff on some Chinese imports, particularly for AppleCare and accessories [7] - Cook noted that the majority of iPhones sold in the U.S. will originate from India, while Vietnam will be the source for most iPads, Macs, Apple Watches, and AirPods [7] Group 3: Future Tariff Concerns - Both India and Vietnam may face significant tariffs on imported goods starting in July, which could undermine Apple's supply chain strategy [8] - There is a possibility of additional tariffs on technology products like semiconductors under a Section 232 Investigation [9] - Other tech companies, such as Amazon and Microsoft, are also adjusting their guidance and pricing strategies in response to tariff uncertainties [10] Group 4: Financial Outlook - Apple did not provide specific guidance for its Services division but expects overall revenue growth in the "low to mid-single digits" on an annual basis for the current quarter [11] - The company reported $85.78 billion in sales during the June quarter last year, indicating a stable revenue expectation for the upcoming period [11]