Apple is bracing for a significant financial hit as new U.S. tariffs loom. CEO Tim Cook said Thursday that the company expects to absorb an additional $900 million in tariff-related costs this quarter, sending Apple’s shares down 3.8% in after-hours trading.
To cushion the impact, Apple is ramping up production shifts—with iPhones destined for the U.S. market now increasingly assembled in India. Meanwhile, iPads, Macs, and AirPods will be primarily manufactured in Vietnam going forward.
While China remains Apple’s dominant production hub for non-U.S. markets, the broader shift suggests a more aggressive move toward supply chain diversification, driven by geopolitical and economic pressures.
Despite strong iPhone sales in Q1, Apple’s services revenue fell short of expectations, and with further tariffs on the horizon, the company’s cost outlook remains clouded by uncertainty.