Apple says potential $900 million tariff impact ahead in earnings release

Apple reported $95.4 billion in revenue and addressed tariff concerns during its earnings release and call May 1.

CEO Tim Cook said that President Donald Trump's tariff regime had a "limited impact in the March quarter, due to optimizations of our supply chain and inventory."

While Cook cautioned that the trade environment may change, he noted the tariffs would have an impact next 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 $900 million to our costs," Cook said.

Cook said in analyst questions that "build-ahead in the manufacturing purchase obligations" were a part of unique factors that could benefit the company in the June quarter. He said that it would be "difficult to predict" tariff and other policy impacts past the June quarter.

Apple’s CFO Kevan Parekh added that the statement assumes that the global macro-economy doesn't worsen and that the company believes revenue will grow in the low to mid-single-digit percentage in its third quarter.

Cook said that the company does not believe it saw evidence of a pull forward in demand in March, ahead of the April 2 tariffs.

He also touted expansions in the United States, pointing to plans to spend $500 billion over the next four years to expand facilities in multiple states.

Apple services reach high, most products saw growth

The tech giant said that its services revenue of over $26.6 billion reached an all-time high and an increase of 12% year-over-year.

The company also reported that it had an earnings per share of $1.65, an 8% increase year-over-year and a record for a March quarter. Its revenue figure was also an increase of 5% year-over-year.

"Thanks to our high levels of customer loyalty and satisfaction, our installed base of active devices once again reached a new all-time high across all product categories and geographic segments," Parekh said in the earnings release.

The company reported in its financial statement that:

• iPhone revenue was $46.8 billion, up 2%
• Mac revenue was $7.9 billion, up 7%
• iPad revenue was $6.4 billion, up 15%
• Wearables, home and accessories revenue was $7.5 billion, down 5%

Parkeh said on the call that the company had a net cash position of $35 billion and had authorized $100 billion in share buybacks.