From Yahoo Finance: 2025-05-02 05:10:00

Apple shares dropped 5% as CEO Tim Cook warned of a $900 million tariff-related hit amid the U.S.-China trade war. Trump’s tariff changes have caused uncertainty for major companies like Apple and Microsoft. Apple is preparing for potential supply-chain issues and rising costs, with analysts predicting weakening iPhone demand.

In a rare move, Apple reduced its buyback program by $10 billion to preserve cash amidst uncertainty. Cook stated that most U.S.-sold iPhones this quarter would be made outside China, potentially avoiding price increases due to tariffs. Analysts are concerned about the impact of U.S. tariffs on Chinese imports.

Apple plans to shift its supply chain away from China, with more iPhones being assembled in India. Apple reported sales of $95.36 billion and earnings of $1.65 per share, slightly exceeding expectations. In China, Apple posted $16 billion in revenue, facing competition from Huawei and slow AI adoption.

Apple’s decision to shift manufacturing away from China includes sourcing more components from the U.S. and expanding in states like Texas and Oregon. Importing iPhones from India is part of Apple’s strategy to avoid tariffs and grow in emerging markets. This move aims to reduce risk and strengthen Apple’s presence in India.

Read more: Apple shares fall as buyback cuts, tariff fears fan investor jitters