Introduction Of Apple
Apple just took a $900 million hit from increased tariffs last quarter — and yet, it’s not rushing to raise prices. At least, not for now.
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The company revealed the tariff cost while announcing its latest earnings. And despite almost a billion dollars in added fees, Apple posted solid numbers: $95.4 billion in revenue and a record-breaking $1.65 earnings per share for Q1.
For a company of It’s scale, the tariff hit raised eyebrows — not because it was huge, but because it wasn’t bigger. One analyst even called it “surprisingly low” on the earnings call.
Still, with tariffs clearly impacting It’s bottom line, the obvious question is: will customers start seeing higher prices on iPhones, Macs, and accessories?
According to CEO Tim Cook, not immediately.
When asked directly whether Apple plans to pass the cost on to consumers, Cook said, “We have nothing to announce at this time.” Translation? No price hikes — at least for the next quarter.
Cook explained that It’s strategy to soften the blow includes shifting production away from China. More iPhones are now being assembled in India, and more Macs are being made in Vietnam. The devices still manufactured in China are mostly being sold outside the U.S., which helps avoid the worst of the tariffs.
The biggest hit came from AppleCare and accessories — items like chargers, cases, and replacement parts. In some cases, Cook said, tariffs in that category reached as high as 145%.
Still, Apple isn’t hinting at raising prices in those areas either.
Another reason Apple’s keeping its cool? Key products like the iPhone, iPad, Mac, It Watch, and Vision Pro haven’t been caught in the net of new global reciprocal tariffs — at least not yet. The U.S. Commerce Department is still evaluating how tariffs are impacting semiconductor imports and related tech, so there’s a temporary reprieve.
So should businesses and consumers lock in their purchases now, just in case prices go up later? Cook didn’t say yes — but he didn’t say no, either. Instead, he emphasized that Apple’s actively involved in tariff discussions and working to keep prices stable.
“Obviously, we’re very engaged on the tariff discussions,” Cook said. “We believe in engagement and will continue to engage. On the pricing piece, we have nothing to announce today.”
