Apple has announced it could incur nearly $900 million in costs this quarter due to President Trump's tariffs, even after certain electronics were spared from taxes. In response, Apple is moving most of its iPhone production to India, distancing itself from China—where tariffs are steepest. Despite these challenges, the company reported a 5% rise in revenue, up to $95.4 billion compared to last year.
Amazon also continues to thrive, with an 8% sales increase in its North America e-commerce sector, demonstrating resilience amidst the tariff chaos. Amazon CEO Andy Jassy expressed optimism for the future, reminding investors that the company often emerges stronger from disruptions like the pandemic.
Apple's shift to India for iPhone manufacturing marks a significant change, as CEO Tim Cook announced that by the end of June, most iPhones sold in the U.S. will be made in India, along with iPads and Macs in Vietnam. Expert Patrick Moorhead noted the impressive speed of this transition, contrasting today's strategy with past claims that only China could produce iPhones.
As companies like Amazon and Apple adapt to new realities and manage supply chains around tariffs, they are also gearing up for potential future uncertainties, maintaining strong sales despite the economic turbulence.
