Apple estimates tariffs will increase costs by $900 million

On Thursday, Apple Inc. (AAPL. O) estimated that costs would increase by about $900 million in the fiscal quarter ending in June if global tariffs remained unchanged. Apple Inc. (AAPL. O) CEO Tim Cook said on an earnings call that the company believes the impact of tariffs on the fiscal second quarter is "limited" as the company shifts supply chains and inventory. "But for the quarter ending in June (fiscal third quarter), assuming that current global tariff rates, policies and implementation remain unchanged for the remainder of the quarter and there are no new tariffs, we estimate the impact will increase our costs by $900 million," Cook said. In addition, Cook made it clear that the company is using U.S. suppliers. He backed Apple's plan to spend $500 billion over four years, in part to expand teams and facilities in Arizona, Nevada, Iowa, Oregon and North Carolina. "We expect to source more than 19 billion chips from more than a dozen states, including tens of thousands of advanced chips produced in Arizona this year," Mr. Cook said.