Apple is set to take a $900 million loss in this quarter because of growing tariffs. During Apple’s Q2 2025 earnings call, CEO Tim Cook said the future is uncertain. “It’s very difficult to predict beyond June,” he said, as the company faces the long-term effects of tariffs introduced during the Trump era, which are still in place and may become even stricter.
So far, most of Apple’s products have not been directly affected by these tariffs. But the cost pressures are starting to show. To reduce the impact, Apple has increased production outside China. The company now makes many U.S.-bound products like iPhones, iPads, Macs, Apple Watches, and AirPods in India and Vietnam.
According to the Financial Times and Reuters, Apple has also asked its suppliers to get iPhone 16 batteries from India. This step is part of their effort to avoid the high tariffs.
However, these changes might not be enough. Tariffs set to rise in July could hurt Apple more, especially when it comes to AppleCare accessories. Some of these accessories still face tariffs up to 145% if brought in from China.
Read more: How do Tariffs Work, and How They Affect the Global Economy
Tim Cook gave credit to Apple’s supply chain team for handling the tough situation well. “I think the operations team has done a phenomenal job,” he said. But he also made it clear that things are still risky.
Right now, there is no sign that customers are changing how they shop or stocking up before prices possibly go up. Cook said, “We haven’t seen any evidence of customers changing buying patterns or stockpiling ahead of expected price increases.”
Besides the tariff trouble, Apple is also facing a legal issue with Epic Games. A federal judge recently ruled that Apple has to stop charging commissions on purchases made outside its App Store. The judge also referred Apple to the U.S. Department of Justice for possible criminal contempt. This comes after claims that Apple didn’t follow a previous court order.
Apple said it will appeal the decision.
What happens in July could force Apple to change its strategy again, and it might affect the prices that customers pay for its products.
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