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apple CEO Tim Cook, nearly a month after the anticipation of investors, recently revealed how Apple was traveling in the Trump administration tariff.
The company only witnessed a “limited impact” on the customs tariff between January and the end of March, Cook told the investors to invite profits for the results of the company’s second quarter.
Cook said that for the current quarter that ends in June, Apple expects about 900 million dollars at additional costs of these definitions – assuming any changes. This surprised the analysts who said in the call that they expected the costs to be higher.
Cook said that the vast majority of Apple products “are not currently subject” to Trump’s mutual definitions. But after June, he did not say much.
“I don’t want to predict the future because I am not sure of what will happen with the definitions,” Cook said, adding that “it is very difficult to predict after after June.”
Apple usually does not provide many details or guidance after the current quarter, but investors did not like the lack of clarity on Thursday. Apple shares decreased by up to 4 % in trading on Thursday, although the company that reported the results that overcame Wall Street revenue expectations and showed strong growth in sales for Mac computers and computers.
“As we look forward, we are still confident,” said Cook.
Apple uncertainty highlights how the company that has a good reputation for global -level operations can escalate due to the inability to predict the rates and dates of tariffs that have turned into the Trump administration.
Cook, who built his reputation in the Silicon Valley as a teacher of Apple operations, discussed how the company dealt with definitions to reduce its impact so far on Thursday. He praised his old division on a call with analysts.
“I just say that the operating team has done an incredible job about improving the supply chain and inventory,” he said.
Cook said that Apple defines American limited products from India and Vietnam. These countries are currently 10 % on a tariff, and the company is reviewing the apple computers for the rest of the world from China, which was achieved by the Trump administration at a tariff rate of 145 %.
Cook also said that Apple has built inventory before the definitions, which will be reported, such as manufacturing obligations in the company’s files with the Securities and Exchange Committee. Cook said that there is no “clear evidence” that consumers were buying more Apple products before the definitions.
“We expect the majority of the iPhone devices sold in the United States of India as its original country,” Cook said. “Vietnam will be the country of origin for all iPad, Mac, Apple Watch and AirPods products sold in the United States.”
Cook said that Apple will continue to pay a 145 % higher tariff on some Chinese imports of Applecare, the extended guarantee program and accessories.
One of the issues of definitions is to move forward that both Vietnam and India are in line with the huge tariff on imported goods in July.
Trump previously targeted both countries under the “mutual tariff” on April 2, but a week later, he stopped the customs tariff for 90 days. Apple has expanded its supply chain for those countries in recent years as a hedge of its work, but Vietnam and India’s strategy will not work if Trump’s tariff becomes valid in the end.
Cook also mentioned the possibility that technology products such as semiconductors receive an additional tariff as part of a process called Part 232.
Apple is not the only major technology company that has the Trump administration tariff.
Amazon Finance Brian Olsavsky said on Thursday that Amazon will present a wide range of guidance due to the induction uncertainty, and also hinted at the possibility of the demand for consumer. Microsoft raised Xbox prices on Thursday, despite the definitions that appeared only once in the company’s profit call on Wednesday.
Apple did not provide guidelines for the profitable services department on Thursday, but provided the same type of predictions with the upper lines that have in the previous seasons. Apple expects the total revenue to grow “low numbers to the middle of the house” on an annual basis during the current quarter. Apple reported $ 85.78 billion in June of last year.
At least during this quarter, Apple investors will know what to expect.
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