Apple Inc. shares fell 5% on Friday after the company announced a reduced stock buyback program and warned of a $900 million cost impact from US-China tariffs this quarter.
The move comes as CEO Tim Cook revealed Apple is accelerating its supply chain shift out of China, with most US-bound iPhones now being assembled in India.
The tech giant’s buyback authorization dropped to $100 billion, down from $110 billion last year—a rare pullback that unsettled investors used to consistent or increasing repurchase levels. Analysts said the move signals a desire to preserve cash amid rising macroeconomic and geopolitical risks.
“Apple historically maintains or increases its buyback. The reduction is a bit of a head-scratcher,” said CFRA Research analyst Angelo Zino.
Cook noted that while a temporary tariff exemption for consumer electronics offered some relief, the company expects a $900 million cost burden this quarter if tariff conditions remain unchanged.
To mitigate risk, Apple is increasingly sourcing from India and Vietnam. iPads, Macs, and AirPods bound for the US will also be primarily produced outside China.
Despite reporting better-than-expected results—$95.36 billion in revenue and $1.65 EPS—Apple's stock is down over 18% in 2025, making it the second-worst performer among the "Magnificent 7" tech stocks.
Analysts at Jefferies and Rosenblatt downgraded the stock following the earnings call.
Cook emphasized Apple’s long-term US investment plan, pledging $500 billion over four years, and highlighted growing operations in Texas, Arizona, and Oregon.
Apple’s China revenue came in at $16 billion, slightly beating expectations, though competition from Huawei continues to erode market share.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ