Apple CEO Tim Cook said Thursday that the company could likely take a $900 million hit in the second quarter due to President Donald Trump's tariffs, but added "certain unique factors" will benefit the tech giant, multiple outlets reported.
Cook gave the assessment on an earnings call.
"For the June quarter, currently we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter," Cook said on the call. "However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs."
Apple took in $95.4 billion in revenue in Q1. Sales of iPhones were $46.84 billion, compared with estimates of $46.17 billion.
Cook said Apple is sourcing half of the iPhones sold in the U.S. from India, with most of its other products sold domestically coming from Vietnam.
"For the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin," Cook said. "China would continue to be the country of origin for the vast majority of total product sales outside the U.S."
He added that the company is buying 19 billion chips from the U.S. this year.
"With an iPhone, you really have to go a step lower and look at the individual parts and where they come from," he told CNBC.
Trump earlier this month partially exempted electronics, such as smartphones and computers, from the reciprocal tariffs on China.
"These products are subject to the existing 20 percent Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket,'" the president wrote in a Truth Social post. "We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations," he added.