October 31, 2025 – During Apple’s fiscal Q4 2025 earnings call (ending September 27), CEO Tim Cook revealed that tariff-related costs had reached approximately $1.1 billion for the quarter spanning July to September. This figure aligned closely with the company’s prior projections, marking a significant drag on profitability amid ongoing global trade tensions.
The financial strain is poised to intensify in the upcoming holiday quarter, which includes peak iPhone 17 sales. CFO Kevan Parekh warned that tariff expenses could surge to $1.4 billion (roughly 9.94 billion yuan at current exchange rates) during the December period. “This reflects escalating pressures as we navigate the busiest shopping season of the year,” Parekh stated, underscoring mounting challenges in cost management.
Cook clarified that the projected 27% quarterly increase from 1.1billionto1.4 billion wasn’t directly tied to sales volume growth. Instead, the estimate assumes stable macroeconomic conditions while accounting for structural cost escalations. “These aren’t linear calculations tied to unit shipments,” he emphasized during the call.
Since new tariff regulations took effect in April 2025, Apple has absorbed staggering cumulative costs. The tech giant’s tariff-related expenditures have climbed from an initial 800millionto1.1 billion last quarter, with forecasts reaching 1.4billionforQ12026.Thisbringstotalestimatedcoststo3.3 billion over three consecutive quarters, encompassing both direct duties and expenses from reconfiguring global supply chains to mitigate risks.
The escalating financial burden arrives as Apple prepares to launch its iPhone 17 lineup and compete in key markets during the year-end shopping frenzy. The company’s ability to maintain profit margins while managing these unprecedented trade-related expenses will remain a critical focus for investors and analysts in the coming months.
