On Thursday, during Apple Inc.'s
What Happened: When asked by analyst Atif Malik from Citi about the potential effects of tariffs on Apple's products and consumer demand, Cook stated, "We are monitoring the situation and don't have anything more to add than that."
The lack of clarity from Cook comes as Apple navigates a complex global market, where tariffs could significantly impact its supply chain and pricing strategies.
Key Risks From Proposed Tariffs
Semiconductor Tariffs: Trump's proposed 25% to 100% duties on foreign-made chips could disrupt Apple's supply of custom silicon from Taiwan Semiconductor Manufacturing Co.
Rising Consumer Prices: A 60% tariff on Chinese imports could drive smartphone prices up by 26%, potentially forcing Apple to add approximately $300 in taxes to a $1,000 iPhone. Chinese suppliers have been Apple's largest group of suppliers since 2020, growing from 48 in 2022 to 52 in 2023.
Complications in Nearshoring: While Apple has expanded production to Mexico and India-investing in Indian iPhone manufacturing and tapping Foxconn for AI server production in Mexico -Trump's tariffs on Mexican and Canadian goods could undermine these efforts.
Cook's Playbook For Navigating Tariffs
During the first Trump presidency from 2017 to 2021, Cook was a frequent visitor to the White House. However, his interactions with the Joe Biden administration have been minimal.
In 2019, Cook successfully lobbied for Mac Pro tariff exemptions by gifting Trump a $6,000 unit and shifting limited production to Texas.
Earlier this month, it was reported that Cook contributed $1 million to Trump's inaugural committee. This came after a Mar-a-Lago dinner meeting and post-election congratulations.
On Thursday, the iPhone maker reported fiscal first-quarter revenue of $124.3 billion, surpassing analyst expectations of $124.13 billion.
Price Action: Apple's stock climbed 3.01% in after-hours trading, reaching $244.75. Earlier on Thursday, it closed at $237.59, down 0.74%, according to Benzinga Pro data.
