**Cupertino:** Apple forecasts a $900 million loss from tariffs in Q2 2025, as CEO Tim Cook reveals efforts to shift production from China to India and Vietnam. Upcoming July tariff increases threaten this strategy, while legal challenges add to the company’s financial uncertainty.
Apple Inc. is poised to face significant financial challenges in the upcoming quarter, with an anticipated loss of $900 million directly attributable to escalating tariffs. This forecast was announced by CEO Tim Cook during the company’s Q2 2025 earnings call, where he indicated that the company’s future remains uncertain.
Cook revealed that, despite most of Apple’s products being insulated from direct tariff exposure thus far, the impact of rising costs is becoming increasingly apparent. “It’s very difficult to predict beyond June,” he stated, emphasising the difficulty in assessing the long-term effects of tariffs instituted during the Trump administration, which are still in place and may be heightened further.
In response to these economic pressures, Apple has intensified its efforts to relocate production outside of China. The company has shifted manufacturing for its U.S.-bound products—including iPhones, iPads, Macs, Apple Watches, and AirPods—to facilities in India and Vietnam. This strategic move aims to mitigate the impact of existing tariffs; however, Cook highlighted that impending tariff increases scheduled for July could jeopardise this strategy, particularly for accessories like AppleCare, which may incur tariffs as steep as 145% when imported from China.
Cook commended Apple’s supply chain team for their adept handling of ongoing disruptions, asserting, “I think the operations team has done a phenomenal job.” Nevertheless, he acknowledged the prevailing uncertainty, which puts the company in a delicate position. He further mentioned that, at this point, there is no indication that consumers are altering their purchasing habits or stockpiling products in anticipation of price hikes.
In addition to tariff-related issues, Apple has encountered a setback in its legal battles, particularly with Epic Games. A federal judge has ruled that the company must cease charging commissions on purchases made outside of its app store. Furthermore, the judge has referred Apple to the U.S. Department of Justice for potential criminal contempt due to alleged violations of a previous court order regarding this matter. In response, Apple has announced its intention to appeal the ruling.
With significant shifts in tariff policy on the horizon, particularly in July, the future trajectory of Apple’s pricing strategy and the related costs for consumers remains a critical area of focus.
Source: Noah Wire Services
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