San Francisco: Apple Thursday, May 1, reported the benefit in the first quarter above expectations, but warned that American prices could cost the company and disrupt its supply chain.
Apple expects the American prices to cost $ 900 million during the current quarter, even if their impact was “limited” at the start of this year, CEO Cook said during a call for results.
Cook said he expected that “a majority of iPhones sold in the United States will have India as a country of origin”, adding that Apple products were exempt from Trump's most serious reciprocal rates for the moment.
“We are unable to estimate the impact of prices precisely, because we are not sure of the potential future actions before the end of the quarter,” said Cook. “Assuming that current global rates, policies and applications do not change for the quarter balance and no new price is added, we estimate the impact to add $ 900 million to our costs.”
Tit-for-tat exchanges have seen heavy American samples imposed on ChinaWith Beijing fixing reprisals on American imports.
High-end technological products such as smartphones, semiconductors and computers have received a temporary reproductive from American prices.
“Apple has accumulated stocks before planned pricing policies,” said Xuan Chiew, Director of Canalys research. “With continuous fluctuations in reciprocal tariff policies, Apple should still move the production linked to the United States in India to reduce exposure to future risks.”
While iPhones produced in continental China still explain the majority of American expeditions, production in India has increased towards the end of the quarter, according to Canalys.
