Apple says it will incur a tariff-related costs of around $2 bn between April-September period

Apple, Cupertino-based tech major, said it incurred a tariff-related cost of $800 million in the third quarter of FY2025 and it estimates the impact to add about $1.1 billion to costs in September quarter.

Tim Cook, CEO, Apple said, in the company’s Q3 earnings announcement, “Finally, the situation around tariffs was evolving. So let me provide some colour there.’‘

For the June quarter, he said, Apple incurred approximately $800 million of tariff-related costs.

“For the September quarter, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add about $1.1 billion to our costs,’‘ Mr. Cook estimated.

However, he added, this estimate should not be used to make projections for future quarters, as there are many factors that could change, including tariff rates.

Responding to a query from The Hindu, Apple said, “The June quarter saw a cost-related costs of $800 million. For September quarter, we estimated impact to be $1.1 billion . So about $2 billion will be the the cost impact from April to September, a six month period’.

Vast majority of market including India saw accelerated growth

Mr. Cook said Apple witnessed accelerated growth and record revenues during the third quarter of FY2025 in the vast majority of its markets, including in India.

He said the company saw an acceleration of growth around the world in the vast majority of markets it tracked, including greater China and many emerging markets.

“And, we had June quarter revenue records in more than two dozen countries and regions, including the U.S., Canada, Latin America, Western Europe, the Middle East, India, and South Asia. These results were driven by double-digit growth across iPhone, Mac, and services,’‘ Mr. Cook elaborated during the earnings announcement.

According to him, Apple saw iPhone growth in every geographic segment and double-digit growth in emerging markets including India, the Middle East, South Asia, and Brazil. “Mac continued to see excellent results with revenue up 15% year-over-year, and we set another all-time revenue record in Services which grew 13% with double-digit growth in both developed and emerging markets,’‘ he added.

He further said, Apple recently launched the Apple Store online in Saudi Arabia, and more such stores would be open in the UAE and India later this year.