Despite paying $900M in tariffs, Apple’s Tim Cook isn’t announcing price increases — yet

Tech Crunch - May 1st, 2025

Apple reported a $900 million increase in tariffs last quarter, yet it announced a record first-quarter earnings per share profit of $1.65, based on its $95.4 billion revenue. The tariff costs, while significant, were described as surprisingly low by an analyst during Apple's quarterly earnings call. Apple CEO Tim Cook indicated that the increased tariffs primarily impacted AppleCare and accessories, with rates hitting at least 145%. Despite these costs, Apple has managed to maintain its profitability without passing costs onto consumers, at least for the immediate future.

To mitigate the impact of tariffs, Apple has strategically shifted its production, importing more iPhones from India and Macs from Vietnam, while exporting devices produced in China to customers outside the U.S. Cook emphasized Apple's proactive stance in tariff discussions and its efforts to keep costs in check. The current exemption of major Apple products from global reciprocal tariffs, as the Commerce Department investigates semiconductor-related tariffs, has further cushioned Apple from potential financial strain. Cook did not announce any immediate price increases but assured ongoing engagement with tariff policy discussions.

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Story submitted by Fairstory

RATING

5.0

Moderately Fair

Read with skepticism

The article addresses a timely and relevant topic concerning Apple's response to tariffs and their potential impact on consumer prices. However, it suffers from factual inaccuracies, particularly regarding financial results and the timing of tariff impacts. The article's reliance on a single perspective, primarily that of Apple's CEO, limits its balance and depth. The lack of diverse sources and transparency further undermines its credibility. Despite these weaknesses, the article is clear and accessible, with potential to engage readers interested in economic and trade issues. To enhance its quality, the article would benefit from more rigorous fact-checking, diverse perspectives, and transparent sourcing.

Accuracy

The story contains several factual inaccuracies and areas requiring verification. For instance, it claims that increased tariffs cost Apple $900 million in the last quarter, which is inconsistent with reports indicating this figure is a projection for the upcoming quarter. Additionally, the story references Apple's first-quarter financial results, but no such figures are corroborated by available sources, which instead discuss second-quarter results. These discrepancies undermine the article's factual accuracy, though some claims, such as Apple's sourcing shifts to India and Vietnam, are accurate and supported by external sources.

Balance

The article primarily focuses on Apple's perspective, particularly CEO Tim Cook's comments, which might skew the narrative towards the company's viewpoint. There is a lack of counterpoints or perspectives from other stakeholders, such as industry analysts or economists, which could provide a more rounded view of the tariff impacts. The inclusion of these viewpoints would enhance the article's balance by offering insights into the broader economic implications.

Clarity

The article is generally clear in its language and structure, making it accessible to readers. However, the narrative could be better organized to distinguish between factual claims and projections. The conflation of different fiscal quarters adds to potential confusion. Despite these issues, the article maintains a neutral tone and logical flow, aiding comprehension.

Source quality

The article does not cite any external sources or provide references to support its claims, which affects its credibility. It relies heavily on statements attributed to Tim Cook without providing verification from additional authoritative sources, such as financial reports or independent analysts. The lack of diverse and reliable sources diminishes the article's overall reliability and authority.

Transparency

The article lacks transparency in its reporting. It does not disclose the basis for its claims, such as the methodology for calculating the $900 million tariff impact. Furthermore, there is no mention of potential conflicts of interest or how the information was obtained, which could affect the reader's understanding of the article's impartiality. This lack of transparency undermines the credibility of the information presented.