Adapted by:
Javier Lacort
Senior WriterI write long-form content at Xataka about the intersection between technology, business and society. I also host the daily Spanish podcast Loop infinito (Infinite Loop), where we analyze Apple news and put it into perspective.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Apple dropped the financial bombshell Wall Street has been waiting for: $900 million in additional costs from President Donald Trump’s tariffs.
While significant, the figure is less devastating than analysts feared—a possible sign of Apple’s months-long, stealthy preparation.
The background. Apple beat expectations with $95.4 billion in revenue, but the trade war paints a complicated horizon. The stock actually fell 4% after the close—not because of today’s better-than-expected results, but because of what comes after June.
The market expected clear answers from Apple about the future, but instead, it got well-calculated evasions.
The money trail. Apple also cut its share buyback program by $10 billion from last year. It’s a typical financial move that goes unnoticed amid the tariff headlines, but it betrays a defensive posture:
- Apple is stockpiling cash for the coming trade storm.
- The company that once bragged about its cash hoard is now protecting it more than ever.
Between the lines. “I don’t want to predict the future because I’m not sure what’s going to happen with tariffs,” Apple CEO Tim Cook said on the call with investors that followed.
It’s unusual for a CEO to express uncertainty—especially Cook, known for his meticulous planning. Perhaps it’s a symptom of the real problem: Even a company like Apple can’t predict the twists and turns of Trump’s tariff policy.
The emergency logistical reorganization that shifted iPhone production to India and other products to Vietnam is impressive. Still, it was improvised—a Plan B with accelerated deadlines.
At stake. The battle goes beyond $900 million in a quarter: It’s a fight for the future of Apple’s business model. It’s about the sale of premium products, with margins well above the industry average, made in Asia.
If India turns out to be 5% or 8% more expensive than China, as analysts expect, it could hurt profitability. And that pain would last well beyond a single quarter. This is the first act in the impending transformation of the global tech value chain.
Image | Onur Binay (Unsplash)
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