Apple expects US$900 million ($1.17 billion) in higher costs from tariffs in the current period, CEO Tim Cook said during a conference call. Revenue will increase by a percentage in the low- to mid-single digits in the quarter, compared with a 5% average analyst estimate. The company didn't offer any guidance on the impact of tariffs beyond the current period.
Apple's much-awaited quarterly earnings report failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China.
The company's shares declined about 2.8% in premarket trading Friday. Apple had released second-quarter results that included worse-than-expected sales in China. The iPhone maker also warned in the Thursday statement that tariffs will increase costs this quarter, a sign that geopolitical tensions are taking a growing toll on the world's most valuable business.
