Apple said in an earnings call on Thursday, July 31, that its revenue for the quarter that ended in June went up by 10%, which CEO Tim Cook said was “better than expected.” Still, Cook said, the company could see $1.1 billion in costs from tariffs during the September quarter.
That’s an increase from the $800 million tariffs imposed by United States President Donald Trump cost Apple in the June quarter.
Cook stressed that the estimated $1.1 billion in tariff costs “should not be used to make projections for future quarters, as there are many factors that could change, including tariff rates.”
“Right now, we’re just estimating the cost of it, and it’s up quarter-over-quarter, because our volume is up quarter-over-quarter,” Cook said when asked about tariffs. “And there was some build ahead in the previous quarter. And so that’s the primary reason that it’s up.”
The “bulk” of the tariffs Apple paid, Cook said, were the International Emergency Economic Powers Act ones from earlier in 2025 regarding China.
Hours before an Aug. 1 trade deadline, Trump signed an executive order putting new tariffs on imports to the U.S., with rates between 10% and 41% for affected countries. These rates will go into to effect on Aug. 7, although China has its own Aug. 12 deadline to finalize negotiations.
Apple announced it is moving production of iPhones to India, reportedly to bypass Trump’s China tariffs, at a May earnings call for the first quarter.
Apple revenue
Apple posted a quarterly revenue of $94 billion in the third quarter, with quarterly diluted earnings per share of $1.57.
“We saw an acceleration of growth around the world in the vast majority of markets we track, 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,” Cook said. “These results were driven by double-digit growth across iPhone, Mac and Services.”
This includes what Cook called a “June quarter record” for the iPhone, which increased 13% year-over-year for a total revenue of $44.6 billion.
As Apple goes forward, Cook said it is significantly growing its investments in artificial intelligence.
“The way that we look at AI is that it’s one of the most profound technologies of our lifetime,” Cook said. “We are embedding it across our devices and platforms and across the company.”
