Following the company’s reduction of its stock buyback program and CEO Tim Cook’s warning of a $900 million tariff-related cost blow this quarter amid a raging Sino-U.S. trade war, Apple shares plunged 5% on Friday. Even Apple, which has been vying for the title of most valuable business in the world alongside Microsoft, has seen its plans thrown into chaos by U.S. President Donald Trump’s tariff vacillations.

After declining 11% in the preceding quarter, Greater China’s revenue dropped 2.3% year over year to $16 billion (€14 billion) in the three months ending March. The numbers show Apple’s slower development of artificial intelligence and its increasing rivalry from Chinese smartphone companies. Sales in the US, Apple’s biggest market, rose 8% over the previous year, but CEO Tim Cook denied that there was any indication that customers were making bulk purchases in advance of tariffs.

Investor worries about Apple’s conservative approach to capital returns and the financial ramifications of protracted trade wars are reflected in the stock’s drop. The smaller buyback is interpreted by analysts as an indication that Apple is conserving cash in the face of economic uncertainty.

To lessen dependency on China, iPhone manufacturing is being moved to India, and other items like iPads and Macs are being moved to Vietnam. $500 billion will be spent to increase operations in the United States, including the construction of new semiconductor and server production facilities in several states.

Cook announced on Thursday that

the majority of iPhones headed for the United States will now be produced in India as part of Apple’s increased attempts to move its supply chain away from China.

Apple barely exceeded market estimates with quarterly sales of $95.36 billion and earnings of $1.65 per share. In keeping with modest expectations, the company projects low-to-mid single-digit sales growth. Use our platform to stay up to date on the most recent business news!