The growing impact of US tariffs has now hit Apple. As per CEO Tim Cook, the company reported "better-than-expected" first quarter profits, but remains wary of the operations.
Citing concerns from the tariff hikes, Apple announced that it will be shifting a majority of its iPhone production to India.
Cook stated that the company is expecting to face tariffs upto at least 900 million US dollars.
"We are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter," news agency Reuters quoted Tim Cook as saying.
"Assuming the current global tariff rates, policies and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs," he added further.
As per the Apple CEO, the company will be shifting its production in order to navigate the challenges caused by the tariffs.
"We expect a majority of iPhones sold in the US will have India as their country of origin," Cook revealed, adding that Apple products currently enjoy exemption from Trump's most severe reciprocal tariffs.
"What we learned some time ago was that having everything in one location had too much risk with it and so we have, over time with certain parts of the supply chain, opened up new sources of supply," Cook told analysts, hinting that this diversification strategy will go on.
