Apple stocks down as CEO Tim Cook warns of $900 million in tariff-related costs for Q2

Apple shares fell nearly 3% in premarket trade 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.

(This story has been corrected to add ‘premarket trade’ in paragraph 1)

—Kanchana Chakravarty and Lucy Raitano, Reuters

https://www.fastcompany.com/91327531/apple-stocks-down-as-ceo-tim-cook-warns-900-million-tariff-related-costs-q2?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss

Erstellt 4mo | 02.05.2025, 14:30:04


Melden Sie sich an, um einen Kommentar hinzuzufügen

Andere Beiträge in dieser Gruppe

Angel Hair chocolate is taking over TikTok

There’s a new viral chocolate bar on the block.

Angel Hair chocolate, created by Belgian brand Tucho, launched in December 2024 and ticks al

22.08.2025, 15:40:05 | Fast company - tech
Cambridge Dictionary adds ‘skibidi,’ ‘delulu,’ and other viral internet words

You can now look up skibidi, tradwife, and delulu in the Cambridge Dictionary. 

Among the 6,000 or so words added to the dictionary over the past year, these i

22.08.2025, 15:40:03 | Fast company - tech
This startup claims it just outran Nvidia on its own turf
  • DataPelago has created a new engine called Nucleus that dramatically speeds up data processing for
22.08.2025, 13:20:06 | Fast company - tech
Hinge CEO Justin McLeod on fighting loneliness, digital fatigue, and the future of online dating

As young people report feeling lonelier and less connected than ever, the dating app Hinge is driving its users into real human experiences. CEO Justin McLeod shares how the platform is combating

22.08.2025, 13:20:05 | Fast company - tech
Wingstop’s secret sauce: Its 60 million-strong army of chicken-tender loyalists

Wingstop calls itself “the wing experts.” 

But Michael Skipworth, CEO of the 2,800-location fast casual chicken chain, likes to highlight a different distinction he’s proud of, havi

22.08.2025, 10:50:16 | Fast company - tech