Apple is gearing up for a significant financial setback this quarter, with the company estimating a $900 million hit linked to persistent and increasing tariffs. During the Q2 2025 earnings call, CEO Tim Cook acknowledged the growing uncertainty ahead, noting that despite earlier efforts to shield key products from direct tariff exposure, rising costs are already affecting operations.
In response, Apple has expanded its manufacturing footprint beyond China, moving production of iPhones, iPads, Macs, Apple Watches, and AirPods to India and Vietnam. While this strategy was aimed at reducing tariff pressures, upcoming tariff hikes in July — particularly on items like AppleCare accessories, which face duties of up to 145% — could strain the company’s efforts further.
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On the legal front, Apple suffered a setback in its long-standing dispute with Epic Games. A U.S. federal judge ordered Apple to halt commission collection on purchases made outside the App Store and referred the company to the Department of Justice for potential criminal contempt, citing alleged violations of a previous court order. Apple has announced plans to appeal the decision.
Despite these mounting pressures, Cook said there has been no sign of consumers altering their purchasing habits or stockpiling products in anticipation of price hikes. The coming months, however, will prove crucial as July’s tariff changes may reshape Apple’s pricing strategies and supply chain decisions yet again.
