Apple CEO Tim Cook disclosed within the week that the tech behemoth was relocating the production of iPhones sold in the United States from China to India, which could result in an expenditure of $900 million this quarter due to tariffs.
He stated during a quarterly earnings call that the estimated impact would be an increase of $900 million in our costs, provided that the present global tariff rates, policies, and applications remain unchanged for the remainder of the quarter and no new tariffs are imposed.
Cook anticipated that “the majority of iPhones sold in the US will have India as their country of origin,” given that some iPhone production has already been relocated to India in just the past few years.
The significant impact of US President Donald Trump’s exorbitant 145% tariffs on the country is underscored by the announcement that Apple is diversifying its global supply chain beyond China.
According to financial services firm Wedbush Securities, approximately 90% of Apple’s production of the iPhone, its most profitable product, has remained in China, despite efforts to expand manufacturing operations elsewhere.
Although the administration has exempted smartphones and other electronics containing semiconductors from “reciprocal” tariffs on China, which have spared iPhones from the most severe levies, Cook reports that products manufactured in China still incur a minimum 20% levy.
The earnings call prompted a nearly 4% decline in Apple’s stock in after-hours trading, which was indicative of investor apprehension regarding the uncertain outlook presented by supply chain instability and tariffs.
“Our supply chain is intricate.” Cook stated, “Risk is an inherent component of the supply chain.” “We discovered some time ago that the risk associated with having everything in a single location was excessive.”
Cook stated that the majority of Apple products intended for non-US markets will continue to be manufactured in China. He also stated that Vietnam will supply the majority of iPads, Macs, Apple Watches, and AirPods sold in the United States.
Apple’s financial performance during the January to March quarter was robust, despite the tariff challenges. In comparison to the same period in 2024, revenue increased by 5% to $95.4 billion in the first three months of the year, surpassing analysts’ expectations. The revenue generated by iPhones increased by 2% to $46.8 billion.
“We were able to optimize our supply chain and inventory, which resulted in a limited impact from tariffs during the March quarter,” Cook stated.
However, its sales in the Greater China region, which encompasses Hong Kong and Taiwan, experienced a minor decline of approximately 2% to $16 billion from the previous year.
Apple’s second-largest market, China, is experiencing an increase in competition from domestic smartphone manufacturers. Consequently, the company’s revenue has experienced a decline.
The Trump administration is enthusiastic about the prospect of Apple relocating iPhone production to the United States, a goal that analysts have deemed virtually unattainable.
Dan Ives, the global director of technology research at Wedbush Securities, previously stated that the price of an iPhone could increase by over threefold to approximately $3,500 if it were manufactured in the United States.
Trump has frequently hailed Apple’s $500 billion investment, which the tech behemoth announced in February, as a triumph. The expenditure, which is scheduled to occur over the next four years, is a component of its strategy to diversify its production operations beyond China and circumvent President Trump’s tariffs on the nation.
However, that dedication is directed toward the construction of server facilities to facilitate Apple Intelligence, the company’s artificial intelligence service, and an academy to educate businesses on manufacturing techniques, rather than iPhone production.
Apple and Google would be obligated to verify your age prior to granting you access to their app stores under a recently proposed law.
A pair of Republican legislators are preparing to introduce a new law that would mandate that app stores verify the ages of all users and share this information with app developers. This legislation is in line with a similar state law that was enacted in Utah earlier this year.
The App Store Accountability Act, a piece of legislation that has the potential to revolutionize the way users interact with app stores, could be the first significant federal online safety legislation in years if it is enacted. One year following its passage, the legislation would be implemented.
In theory, the proposed legislation could facilitate the provision of secure experiences for children by technological platforms.
However, app store proprietors and privacy experts have observed that the approach may generate legal and practical concerns, such as the verification of the ages of juvenile users who lack government IDs.
According to a draft that was exclusively provided to CNN, the bill, which is scheduled to be introduced by Sen. Mike Lee of Utah and Rep.
John James of Michigan on Thursday, would mandate that app store operators with a minimum of 5 million users verify the ages of their users when they register for an account.
App stores, such as those operated by Apple and Google, would be obligated to provide app developers with the user’s age category, which is defined as “young child” for individuals under the age of 13, “child” for those 13 to 15, “teenager” for those 16 to 17, and “adult” for those 18 and older, while safeguarding their personal information.
Before minors could obtain or make purchases through an application, parental consent would be necessary.
Lee indicated in a statement that the legislation is intended to prevent children from accessing applications that may expose them to “violent and sexual content, as well as the risk of online predator contact.”
Lee stated, “Our legislation addresses the root cause of the issue by instituting age verification and accountability.”
