Apple's Strategic Moves Amid Tariff Troubles

Apple shares dropped nearly 3% in premarket trade following a cut in its share buyback program. Amid the U.S.-China trade war, the company is shifting production to India to avoid tariffs. Despite CEO Tim Cook's reassurances, investors remain wary about future impacts on Apple's growth trajectory.

In a significant move amid ongoing trade tensions, Apple shares saw a nearly 3% decline in premarket trading on Friday. This came after the tech giant announced a reduction in its share buyback program, with CEO Tim Cook cautioning about an estimated $900 million in tariff-related costs this quarter.

Apple, which manufactures over 90% of its products in China, has been strategically shifting its iPhone production to India. This is an effort to mitigate the impact of the U.S.-China trade war, spurred by President Donald Trump's policies. Analysts view this as a necessary adjustment, with India being hailed as Apple's 'life raft supply chain' amid trade uncertainties.

Despite Cook's efforts to reassure investors during the earnings call, there remains a palpable demand for more clarity regarding Apple's future amid escalating trade tensions. As tariffs loom, the long-term strategies of Apple remain under scrutiny, with industry peers like Alphabet, Microsoft, and Meta showing more buoyant performance metrics.

(With inputs from agencies.)