Investment.com – Apple Inc (Nasdaq: AaPl) hopes that President Donald Trump's trade tariffs will add about $ 900 million to the current quarter expenses, General Director Tim Cook said in the phone conference on income on Thursday. The company's stock decreased in the post -trade period.
Cook also talked about major changes in Apple's supply chain, especially about the transfer of iPhone production sold in the United States, from China to India.
Apple shares fell 3.8% after finishing the transaction to $ 205.10.
Cupertino's technology giant, California, shows higher revenue for March, especially thanks to the improvement of iPhone sales. However, this has been compensated by weaker than expected, income from high service business.
Speaking at a telephone conference, CEO Cook noted the limitations of Trump's tariffs in the third quarter.
But Cook said he hoped that most of the iPhone sold in the United States would have India as a country of origin, while noting that Apple products were exempt from Trump's tax, at least at this time.
Cook said that Vietnam will be a country originating for most iPads, Mac, Apple Watch and AirPods sold in the United States, while China will remain a country originating for the majority of common sales outside the United States.
We cannot accurately assess the influence of tariffs, because we are not sure about the potential actions in the future until the end of the quarter … Suppose that the tax rate, politicians and current applications will not change until the end of the quarter and new tariffs will not be added, we will assess that this will add $ 900 million to our costs.
Trump introduced a tariff with a 145% Chinese amount in April, although he provided a temporary delay in electronic import. But Washington also signals that Trump will introduce separate electronic taxes in the next few weeks.
High import tax price for China does not promise anything good for Apple, because the company produces about 90% of its products in this country. The messages earlier this year showed that the company hastily sent hundreds of thousands of iPhones from India to the United States to avoid Trump's tariffs on Beijing.
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