Apple warns tariffs will add $1.4b costs in June quarter
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More news: Apple CEO Tim Cook said planned US tariffs on foreign imports will add US$900 million ($1.41 billion) in costs this quarter.
What they said: “We estimate the impact to add $900 million to our costs,” Cook told analysts on a conference call.
“This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter,” he added.
Apple beats Q2 estimates but China sales disappoint
The news: Apple posted second quarter earnings slightly ahead of expectations, lifted by stronger-than-expected revenue from its services business, but lower sales from China disappointed investors.
The context: The results came one day after a federal judge ordered Apple to stop charging commissions on digital purchases made outside its App Store. Apple is also navigating tensions as the US and China impose new tariffs, though iPhones and iPads are currently exempt.
The numbers: The iPhone-maker posted per-share earnings of USD1.65 and revenue of USD95.4 billion, both ahead of Wall Street estimates.
Services revenue rose to USD26.6 billion from USD23.9 billion, while iPhone sales came in at USD46.8 billion, outstripping expectations.
Revenue from Greater China fell 2.3% to USD16 billion, below the USD16.8 billion analysts expected, sending shares almost 3% loser in after hours trading.
Mac and iPad sales were USD7.9 billion and $6.4 billion, respectively.
Apple authorised an additional USD100 billion in stock buybacks and boosted its quarterly dividend 4% to 26 cents.
The sources: Apple release , Bloomberg
