Apple Shares Slide After $900 Million Q3 Tariff Warning

Apple CEO Tim Cook warned that the company expects a $900 million increase in costs in the upcoming quarter due to tariffs, though the long-term impact remains uncertain given shifting U.S. trade policies. Despite these pressures, Apple exceeded Wall Street expectations on both sales and earnings in its most recent quarter, announcing a $100 billion stock buyback and a 4% dividend increase. To mitigate tariff effects, Apple is shifting iPhone production for the U.S. to India and manufacturing Macs and iPads in Vietnam, while China remains the main production hub for international markets. Analysts caution that even with these supply chain adjustments, increased costs could eventually be passed on to consumers or impact Apple's profit margins. Apple also plans to expand its retail presence in India by the end of 2025, reflecting a broader geographical diversification strategy. Shares fell following the earnings call, reflecting investor concern over future tariff-related risks.