Apple, for now, seems to have earned the favor of the Trump administration. The company, through some deft political maneuvering, has managed to escape the brunt of the tariffs and taxes the Trump administration plans on imposing. However, it is not 100% exempt. In fact, during the latest Apple earnings call, CEO Tim Cook revealed how much in tariffs the company had to pay.
How much in tariffs did Apple pay?
According to Cook, Apple had to pay $1.1 billion in tariffs in the most recent quarter. This is an increase of $300 million from the $800 million in the previous quarter. However, Cook had previously warned that this increase was coming. In the previous quarter, the CEO cautioned investors that the impact of the tariffs would be felt more in the September 2025 quarter.
Why is that? This is because September is when Apple announces its latest iPhones. It is also when the company is expected to sell the most products. With tariffs, the more you import, the more taxes you pay, so this number doesn’t come as a surprise. In fact, Cook had previously estimated that it would be around $1.1 billion, and he was right.
But here’s the thing: if you thought it would go down the next quarter, it won’t. According to Apple CFO Kevan Parekh, he says that the tariffs the company can expect to pay in the December 2025 quarter could reach $1.4 billion. This means that in total, Apple would be paying a little over $3 billion in tariffs for 2025 alone. Unless the countries affected by these tariffs negotiate better rates with the Trump administration, that’s a huge chunk of change for Apple to be paying.
But what does this mean for consumers?
To a certain extent, companies are willing to absorb some costs on behalf of consumers. This isn’t necessarily driven by goodwill, but price sensitivity. If the price goes up too much, consumers will stop buying. So it’s better for a company to take a slight hit on profit if it means continued sales.
But like we said, $3 billion is no small amount. As rich as Apple is, we’re sure that $3 billion is an amount the company would rather spend or invest into something else. If the company were to be forced to keep blowing that kind of cash on tariffs alone, eventually it would pass the buck onto its customers.
At the start of the year, the Bank of America predicted that Apple might have to raise its iPhone prices by 10% to help mitigate these tariffs. For the most part, Apple has managed to maintain the price of its latest iPhone 17 models. There were some increases, like with the iPhone 17 Pro, but users got higher base storage.
We’re not sure what Apple’s plans are for the iPhone 18 series, but at this rate, you should prepare your wallets.
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