Apple's tariff costs and iPhone sales are soaring - how long until device prices are too?

Apple's recent earnings call reveals that the company is facing significant tariff costs, with an additional $1.1 billion expected to be added to its expenses this quarter. This development comes amidst the ongoing trade tensions between the United States and China, which have resulted in the imposition of tariffs on various products, including Apple's devices. Despite these challenges, Apple's iPhone sales have been soaring, indicating strong consumer demand for its products. However, the question remains: how long can Apple absorb these increased costs before it becomes necessary to pass them on to consumers through higher device prices? The article suggests that this is a critical juncture for Apple, as it navigates the complex landscape of global trade policies and consumer expectations. The company's ability to maintain its competitive edge and profitability in the face of these tariff-related expenses will be closely watched by investors, analysts, and the broader tech industry.