Apple suffers losses of over 1.3 billion yen due to Trump tariffs, but performance remains strong in the second quarter of 2025

On May 1, 2025 local time, Apple announced its financial results for the second quarter (January to March) of 2025. In the report, Apple revealed that it had suffered a loss of $900 million (approximately 130 billion yen) due to the reciprocal tariffs (Trump tariffs) introduced by President Donald Trump.

Apple reports second quarter results - Apple
https://www.apple.com/newsroom/2025/05/apple-reports-second-quarter-results/

Despite paying $900M in tariffs, Apple's Tim Cook isn't announcing price increases — yet | TechCrunch
https://techcrunch.com/2025/05/01/despite-paying-900m-in-tariffs-apples-tim-cook-isnt-announcing-price-increases-yet/

Apple says tariffs will cost it at least $900 million this quarter | The Verge
https://www.theverge.com/news/659866/apple-trump-tariffs-cost-tim-cook

Apple CEO Tim Cook says tariffs to add $900M in costs in Q3, but future uncertain | TechCrunch
https://techcrunch.com/2025/05/01/apple-ceo-tim-cook-says-tariffs-to-add-900m-in-costs-in-q3/

According to Apple's second quarter 2025 financial results, this quarter's sales increased 5% year-on-year to $95.4 billion (approximately 13.9 trillion yen), and net income also increased 5% year-on-year to $24.78 billion (approximately 3.6 trillion yen). Of the total sales, product sales were $68.7 billion (approximately 10 trillion yen), broken down into iPhone sales of $46.8 billion (approximately 6.8 trillion yen), Mac sales of $7.95 billion (approximately 1.2 trillion yen), iPad sales of $6.4 billion (approximately 930 billion yen), and wearable home accessory sales of $7.52 billion (approximately 1.1 trillion yen). Service sales were $26.6 billion (approximately 3.9 trillion yen).

In its earnings announcement, Apple said, 'Assuming that current global tariff rates, policies and their application remain unchanged for the remainder of the quarter and no new tariffs are added, we estimate that the impact will result in increased costs of $900 million. This estimate should not be used to forecast future quarters because there are certain factors favorable to the June quarter,' revealing that the impact of the Trump tariffs is a $900 million loss. Despite the $900 million loss, Apple recorded its highest-ever earnings per share ($1.65: approximately 240 yen) in the second quarter.

During an investor call reporting earnings, Apple CEO Tim Cook said 'we have nothing to announce at this time' when asked about price increases for Apple products as a result of Trump's tariffs.

At the time of writing, Apple imports most of its iPhones to the US from India, not China. Cook explained that this is to 'mitigate the impact of tariffs.' Cook also explained that almost all iPads, Macs, Apple Watches, and AirPods sold in the US will be manufactured in Vietnam, and that devices manufactured in China will be shipped to customers outside the US.

It has been revealed that Apple flew five planes loaded with iPhones from India and China to the US in just three days to avoid Trump tariffs - GIGAZINE

Cook said the biggest hit from the Trump tariffs will be 'AppleCare and accessories businesses, including spare parts and iPhone cases to repair broken devices covered by warranty programs,' and that tariffs on these businesses have 'reached at least 145%.' However, he did not say whether the impact of the tariffs would result in price increases for warranty programs or accessories.

Cook explained that Apple has not been hit as hard as it should have been by the Trump tariffs, because Apple products such as the iPhone, Mac, iPad, Apple Watch, and Apple Vision Pro are not subject to the Trump tariffs. It has been reported that the reason that electronic devices such as smartphones, PCs, and semiconductors were not subject to the Trump tariffs was because Cook directly lobbied government officials, including the Secretary of Commerce .

President Trump excludes electronic devices such as smartphones, PCs, and semiconductors from reciprocal tariffs - GIGAZINE

'Needless to say, we're very engaged in the tariff discussions. We believe in being proactive and we plan to continue to be proactive. We have nothing to announce today in terms of pricing,' Cook said, revealing that the company plans to continue engaging with the government on tariffs.