Key takeaways of zdnet
- The tariff cost approximately $ 800 million in the previous quarter of Apple.
- The bill will go up to $ 1.1 billion in this quarter.
- Apple says that in April 10 iPhone sales were due to tariff fear.
Apple Income Call usually contains a subject, and is usually a word associated with the subject that is repeated several times throughout the call. During yesterday’s call, the theme and frequent words were “tariffs”.
iPhone sales were increasing
Due to the negative aura surrounding that T word, apple was eager to keep things excited, and with good reasons. Eventually, the sale of iPhone was 13% year -on -year, causing a large part of $ 44.6 billion in revenue.
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Before the release of earnings, the feeling among investors was that the iPhone would enjoy a collision in sales as consumers pulled the trigger on the upgrade before any tariff-related growth. Apple tried to disregard the iPhone during the earnings call by indicating the iPhone “growth in every geographical segment and double -points in emerging markets”.
But the headlines suggested that tariffs could push the price of the iPhone to stratospheric levels, and there is no doubt that some helped encourage people to upgrade.
In fact, when Apple CEO Tim Cook was asked about this during the Q&A, he said that the company estimated that “there should be about 1 digit of 10 digits in the context of people buying especially due to discussion about tariffs, especially due to discussion about tariffs.”
How, or even, will affect the iPhone 17 upgrade to be seen.
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During the final earning call, Cook was curious to reveal that the tariff would have an impact of about $ 900 million. It turns out that the effect was slightly lower, “approximately $ 800 million”, but in the next quarter, it would increase to $ 1.1 billion – and this number does not change anything. Very big perception.
It is a major part of the change, even for a company that has posted a revenue of just $ 94 billion and a gross margin of about half.
And till now, Apple shoulders that cost.
But for how long?
Well, as you expect, the apple is eager to avoid talking about the price increase.
Instead, this rather we will focus on ways that the company intends to reduce the impact of tariffs – such as changing the country of the origin of iPhone from China to India – and pointing to the company’s investment of $ 500 billion in the US over the next four years. (This four -year timkel is interesting, as the company focuses on a plan for the life cycle of this presidential administration, and is beyond that thinking or plan.)
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But Apple can offset the tariff with either secret price increase or savings. For example, it is already rumored that the upcoming iPhone 17 will leave the plus model that has not proved all this popular and replaced it with a pricier air model. And at the end of this year, new models of landing also give Apple the ability to divert prices and save on the bill of content.
One thing is sure: With cash flowing in Apple’s coffeers, it is that the company is far from doom.
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