Apple Warns $900 Million Tariff Costs in June Quarter as Shares Drop Nearly 7% Amid India Manufacturing Shift and Price Doubling Estimates

Apple Inc. has warned that U.S. tariffs could increase its costs by $900 million in the June quarter, contributing to a nearly 7% decline in its share price. CEO Tim Cook highlighted that while iPhones avoid the 125% tariff, they still face a 20% duty unless manufactured in India, where over half of U.S.-bound iPhones are now assembled. Other products like iPads, Macs, and Apple Watches are primarily shipped from Vietnam, reflecting supply chain adjustments that limited the impact in the first quarter. Analysts suggest that Apple is currently absorbing tariff-related costs but may eventually need to raise iPhone prices to maintain profit margins. Estimates indicate that if Apple were to shift production to the U.S., iPhone prices might need to double from $1,000 to $2,000. The tariffs and export restrictions imposed by the Trump administration have also cast uncertainty over major chip stocks and are influencing Apple’s strategic move to diversify manufacturing away from China, amid geopolitical tensions such as the India-Pakistan conflict.