Apple has managed tariffs so far, but Cook says its tough to predict beyond June
Summary
(L-R) Apple CEO Tim Cook, Vivek Ramaswamy and Secretary of Homeland Security Kristi Noem attend the inauguration ceremony before Donald Trump is sworn in as the 47th U.S. President in the U.S. Capitol Rotunda in Washington, D.C., on Jan. 20, 2025. Apple shares fell as much as 4% in extended trading on Thursday despite the company reporting results that beat Wall Street expectations for revenue and showed strong sales growth for iPads and Mac computers. Apples uncertainty highlights how even a company with a reputation for world-class operations can get whacked by the unpredictability of the Trump administrations shifting tariff rates and dates. Cook also said that Apple had built up inventory ahead of the tariffs, which would be reported as manufacturing purchase obligations in the companys filings with the Securities and Exchange Commission. Apple expanded its supply chain to those countries in recent years as a hedge for its business, but the Vietnam and India strategy wont work if Trumps tariffs ultimately take effect.