Apple reported first-quarter profit above expectations but warned that U.S. tariffs could cost the company and were disrupting its supply chain.

Apple anticipates U.S. tariffs to lead to a $900 million expense in the ongoing quarter, despite their influence being limited earlier this year, stated CEO Tim Cook during an earnings call.

Cook mentioned he anticipated most iPhones sold in the U.S. will list India as their country of origin, noting that currently, Apple's products are not subject to Trump's harshest reciprocal tariffs.

"We cannot accurately gauge the effect of tariffs, as we lack clarity on possible future actions before the quarter concludes," Cook stated.

Considering that the existing global tariff rates, policies, and applications remain unchanged for the rest of the quarter and no additional tariffs are introduced, we project the effect will increase our costs by $900 million.

Tit-for-tat interactions have led to significant U.S. tariffs on China, while Beijing has established countervailing restrictions on imports from the U.S.

Luxury technology items like smartphones, semiconductors, and computers were given a short break from U.S. tariffs.

While finished smartphones are currently exempt from Trump's tariffs, not every component used in Apple devices is protected, according to independent tech analyst Rob Enderle.

"The greater the number of components crossing borders, the higher the cost that gets passed to the device," Enderle clarified.

Canalys research manager Le Xuan Chiew stated that Apple accumulated stock prior to the implementation of the tariffs.

Due to continuous changes in reciprocal tariff policies, Apple is expected to increasingly relocate U.S.-bound manufacturing to India in order to lessen vulnerability to future.

According to Canalys, although iPhones manufactured in mainland China still represent most U.S. shipments, production in India increased significantly towards the end of the quarter.

Cook stated that Vietnam would serve as the country of origin for nearly all iPad, Mac, Apple Watch, and AirPod products sold in the United States.

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China will remain the primary location for the production of most Apple products destined for markets outside the U.S.