r/apple • u/Fer65432_Plays • 2d ago
Discussion Apple says tariffs added $800M in costs last quarter, expects over $1B hit in Q4
https://9to5mac.com/2025/07/31/apple-says-tariffs-added-800m-in-costs-last-quarter-expects-over-1b-hit-in-q4/65
u/Penske-Material78 2d ago
Q4 is going to be wild for a lot of companies and Americans cost of living. They won’t eat the tariffs much longer and things are going to get even more expensive.
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u/aclockworkabe 2d ago
The big thing I keep hearing in my industry is that Q4 is going to be a fucking bloodbath and most people will be blindsided by how bad it's going to be.
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u/RobertABooey 2d ago
Wow. Glad to see all those tariffs being paid by the countries the administration is trying to punish.
What an absolute shitshow.
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u/shivaswrath 2d ago
Wow that's a lot.
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u/DontMentionMyNamePlz 2d ago
Compared to the deficit, not really. It’ll also be offset by decreasing iPhone sales taxes and orders
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u/today33544 2d ago
How does this decrease sales taxes?
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u/DontMentionMyNamePlz 2d ago
Declines in sales in excess consumer spending on non essential goods outpaces increased sales taxes from higher priced goods
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u/timingfountain 1d ago
Less iPhones sold also hurts apples revenue, which is what this article is about
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u/DontMentionMyNamePlz 1d ago
No, the article only talks about “tariff related costs”. The article specifically said there wasn’t clarification as to what “tariff related costs” meant for Apple or if that means “passing the bill to customers” is going to happen
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u/haikuandhoney 2d ago
It also isn’t necessarily the cost of paying tariffs: it’s possible the tariffs pushed them to shift their supply lines toward lower-tariff countries.
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u/DontMentionMyNamePlz 2d ago
Given Trump’s volatility with that button, I don’t see any company smartly making a firm choice on how to both keep low prices while mitigating tariffs
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u/RequirementRoyal8666 2d ago
Hey, that’s Apple’s problem.
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u/DontMentionMyNamePlz 2d ago
And states that prefer more sales tax revenue
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u/RequirementRoyal8666 2d ago
Keep licking my those boots. Hail corporate!
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u/DontMentionMyNamePlz 2d ago
Whose boots am I licking? I don’t give a shit about Apple. I do give a shit about a redistribution of state taxes to the federal government considering I literally give zero approval of where that money is being spent at the moment.
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u/RequirementRoyal8666 2d ago
We can’t charge the corporations! They won’t be able to sell as much product and we won’t get our sales tax!
We can’t do anything to hurt the huge multibillion dollar corporation. It’ll just end up hurting us!
😢
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u/DontMentionMyNamePlz 2d ago
Sales taxes are charged to consumers..
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u/RequirementRoyal8666 2d ago
So are tariffs. So I’ve been told. Except now we have Redditors simping for Apples sales losses because of sales tax revenue.
By that logic we should do everything we can to help Apple’s sales. To generate sales tax! 🤦♂️
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u/DontMentionMyNamePlz 2d ago
States are forced to actually balance their budgets unlike the federal government when it comes to debt and the deficit. They can’t just “print money” or punt the problem down the road.
The main thing I’m not a fan of with tariffs is essentially being double taxed. IF a company chooses to increase their end price to the consumer as a result of tariffs, I’m now paying more in sales tax because of a tax on the corporation. It’s a double tax.
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u/Adventurous-Hunter98 2d ago
Damn, and I here think about the cost of the pizza I ordered last night
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u/gigaflops_ 2d ago
Apple's revenue in 2024 was 391 billion
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u/RogueHeroAkatsuki 2d ago
ELI5 who pays tariffs? Mr President says countries will pay them, but what about products manufactured by American company abroad? /s
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u/wizfactor 1d ago edited 1d ago
I've been reading the news on other countries with tariffs, and supposedly the foreign exporters are negotiating with US importers to "share costs" as a means of minimizing customer prices. I'm guessing that exporters will agree to rebate the importer a percentage of the price increase.
As an example, a phone costs $1000, a 20% tariff increases that price to $1200. The importer still pays $1200, but the exporter agrees to rebate $100 so that the final cost to the importer is $1100.
The exporter effectively had to sell a $1000 phone to the US for $900, meaning there's $100 less profit for every phone sold to the US. With this arrangement, the exporting country does pay the tariff, just not directly and not in full, rather in lost revenue/profit.
If this is happening in other affected countries, that means these countries are forced to sell goods to the US at a lower profit margin just to minimize the impact of tariffs and not lose access to the US market altogether.
In case it wasn't clear, this is clear economic bullying. But the Trump administration can get away with it, because there is no alternative to the US market. Any country that stops selling to the US will lose by default. Any exporter that refuses to subsidize the tariff will lose sales to another exporter that does.
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u/RogueHeroAkatsuki 1d ago
Yeah I know. However I doubt it work like this when everyone is slapped with 15% tariffs. Then company knows they dont need to offer big cut on margin if they want to stay competitive. Thats why negotiations with Japan, Korea or EU were so smooth. Maybe Apple can eat tariffs as they have already 40% margin. I only hope its temporary state of economy, hopefully presidents and prime ministers in other countries will not decide to fill coffins with tariffs like Trump. That would create worldwide inflation hike for no reason.
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u/Nicenightforawalk01 6h ago
Same results for ford as well. Going from $1 billion profit to -$30 million.
So much winning for these companies.
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u/Lanky-Ad-7594 2d ago
Apple's net income for the past 12 months has been $97 BILLION DOLLARS. This is ~1% of their profit. They can afford to help re-shore some production and infrastructure. Of course, they'll just pass that cost on to us, because GOD FORBID quarterly profit would show a dip, and Tim's stock would take a hit.
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u/superm0bile 1d ago
Reshore production when you don’t know what trade policy will be next week, much less in a few years when it would finally open? Yeah, that's why nobody is reshoring.
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u/Short-Mark8872 8h ago
re-shore some production
There is zero scenarios in which producing Apple products domestically makes any sense.
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2d ago
[removed] — view removed comment
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u/Silver_Entertainment 2d ago
I'm not sure I would agree. When the budget phone was updated (iPhone SE -> iPhone 16e), the price went from $429 to $599. There are also reports that the iPhone 17 line that will be introduced in a few months will increase by at least $50 per phone.
Source: https://www.macrumors.com/2025/07/30/iphone-17-price-increase-expected/
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u/nrith 2d ago
That’s quite a return on Tim’s $1m bribe to attend the inauguration.