Recent economic shifts, particularly the implementation of new tariffs, have triggered an unexpected surge in consumer behavior, leading to widespread “panic buying” of iPhones, a phenomenon acknowledged by Apple’s CEO, Tim Cook.

This isn’t the first instance of such consumer anxiety. During an earlier earnings call in May 2025, Cook had noted minor instances of iPhone panic buying driven by concerns over impending reciprocal tariffs from the previous administration. However, the current situation represents a significantly more pronounced shift in purchasing patterns.

As Apple recently announced its first-quarter results under the new tariff regime, Cook elaborated on the escalating impact. He informed CNBC that the company observed clear evidence of accelerated buying during the early part of the quarter, directly linked to consumer worries about potential price increases due to tariffs.

Cook quantified this unexpected buying spree, estimating it contributed approximately one point to Apple’s overall ten points of company growth. This highlights the measurable effect that tariff-induced anxieties are having on consumer purchasing decisions and, consequently, on the tech giant’s financial performance.

Previously, Apple had managed to mitigate the tariff impact by strategically reorganizing its supply and delivery chains. Despite these efforts, Cook had earlier projected that tariff cost increases would add a substantial $900 million to the company’s operational expenses, underscoring the financial burden.

The tariffs in question are wide-ranging and frequently subject to change, posing significant challenges for international trade. Contrary to some claims, these import fees are ultimately borne by U.S. companies and, by extension, American consumers, as businesses often pass on increased costs. Apple has been actively working to minimize this impact on its buyers.

The unpredictable nature of these trade policies has led to considerable uncertainty. Tim Cook has previously refrained from issuing forward-looking guidance for subsequent quarters due to the sheer number of unknown variables. With a new range of devices anticipated for launch in September, Apple faces renewed pressures to adapt its strategies.

Cook also clarified that a significant portion of the tariffs paid were the IEEPA tariffs, primarily affecting imports from China early in the year. To counteract these escalating fees, Apple has ingeniously altered its product distribution, with a majority of iPhones sold in the United States now sourced from India.

Despite these proactive reorganizations aimed at sourcing devices from countries with lower tariffs, the global trade landscape remains highly unstable. Recent reports indicate the possibility of a 25% tariff being imposed on goods imported from India, which could potentially negate Apple’s efforts and bring import fees back to previous high levels, posing persistent challenges.