Apple Inc. shares plummeted 5% on Friday after announcing a scaled-back $100 billion stock buyback program and a projected $900 million tariff-related cost this quarter.
CEO Tim Cook outlined plans to shift iPhone production to India, navigating US-China trade tensions while maintaining robust financial performance.
Apple reduced its stock buyback authorisation from $110 billion to $100 billion, surprising investors accustomed to steady or growing repurchases. CFRA Research analyst Angelo Zino called the reduction unexpected, suggesting Apple aims to conserve cash amid macroeconomic and geopolitical uncertainties. Cook warned of a $900 million cost from US-China tariffs, despite a temporary exemption for consumer electronics.
Apple Stock Drops. Why a $900 Million Tariff Hit Could Be Just the Start. https://t.co/oh2lWNme3G
— Barron's (@barronsonline) May 2, 2025To counter these challenges, Apple is accelerating its supply chain shift. Most US-bound iPhones are assembled in India, and iPads, Macs, and AirPods are increasingly sourced from India and Vietnam.
Financial Performance and Market Challenges
Apple reported strong quarterly results, with $95.36 billion in revenue and $1.65 earnings per share, surpassing expectations. However, its stock has declined 18% in 2025, ranking it among the weakest “Magnificent 7” tech performers. Jefferies and Rosenblatt downgraded the stock post-earnings, citing concerns over tariff impacts and competition from Huawei, which is eroding Apple’s $16 billion China market share.
Cook reaffirmed Apple’s commitment to US investments, pledging $500 billion over four years to expand operations in Texas, Arizona, and Oregon.
Read: iPhone 17 Features Major Camera Upgrades and Sleek Design
Apple’s 5% stock drop reflects investor concerns over a smaller buyback program and looming tariff costs. As Tim Cook steers the company toward diversified production and long-term US investments, Apple remains a tech powerhouse navigating complex global challenges. Investors await further updates on its strategic pivot.
