Finance
Apple shares fall as tariff costs to add more agony
Published by Global Banking & Finance Review®
Posted on May 2, 2025
3 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 2, 2025
3 min readLast updated: January 24, 2026
Apple shares dropped 3% as tariff costs rise. CEO Tim Cook plans to move iPhone production to India to reduce trade war impacts.
(Reuters) - Apple shares fell nearly 3% on Friday after the iPhone maker trimmed its share buyback program and CEO Tim Cook warned of additional tariff-related costs of about $900 million this quarter amid a raging Sino-U.S. trade war.
The Cupertino, California-based company that makes over 90% of its products in China said it plans to shift production of iPhones to India to minimize the impact of President Donald Trump's trade war.
"It looks like Apple is progressing faster than expected with its move to shift production of US phones into the region (India)," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Analysts at Wedbush echoed this view, referring to India as Apple's "life raft supply chain" as the company navigates through tariff turbulence.
Cook outlined how Apple has started to build up a stockpile of products so that the majority of its devices sold in the U.S. this quarter will not come from China.
“Tim Cook did his best to reassure investors on last night’s earnings call, but many likely came away still wanting more clarity about what lies beyond June," Matt said, adding that the $900 million hit to profit turned out to be smaller than many had feared.
Apple, which has been grappling with increased competition in key market China from rivals like Huawei due to slower rollouts of AI features, was already in troubled waters before the tariffs hit.
"The question for investors is what can replace China for Apple? This is not an easy question to answer and could threaten the long-term trajectory of Apple’s growth plan," said Kathleen Brooks, research director at XTB.
Despite electronics being exempted from U.S. President Donald Trump's slew of import tariffs so far, Washington has signaled that some levies could be imposed in the coming weeks.
Big Tech peers Alphabet, Microsoft and Meta Platforms beat quarterly estimates aided by artificial intelligence, while Amazon.com's cloud revenue growth fell short of revenue expectations.
These results were in stark contrast to dour forecasts from consumer electronics companies that are more exposed to tightening consumer budgets - chipmakers Qualcomm, Samsung Electronics, and Intel.
Apple shares lost about 15% so far this year. That compares with a 2.3% fall in Meta, and a nearly 1% rise in Microsoft.
Apple's 12-month forward price-to-earnings ratio is 27.63, compared with Microsoft's 28.64 and Meta's 21.48.
(Reporting by Kanchana Chakravarty in Bengaluru; additional reporting by Lucy Raitano in London; Editing by Mrigank Dhaniwala)
Apple shares fell nearly 3% after the company trimmed its share buyback program and CEO Tim Cook warned of additional tariff-related costs of about $900 million.
Apple plans to shift production of iPhones to India to minimize the impact of President Donald Trump's trade war.
Analysts at Wedbush referred to India as Apple's 'life raft supply chain' as the company navigates through tariff turbulence.
Apple shares have lost about 15% so far this year, contrasting with a 2.3% fall in Meta and a nearly 1% rise in Microsoft.
Apple is grappling with increased competition in China from rivals like Huawei, particularly due to slower rollouts of AI features.
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