May 1, 2025 — San Francisco
Apple is tightening its belt in anticipation of escalating trade tensions, trimming its share repurchase plan by $10 billion and bracing for nearly $900 million in additional costs this quarter due to tariffs. CEO Tim Cook highlighted the company’s ongoing efforts to restructure its supply chain to mitigate exposure to U.S.-China trade risks, signaling a shift in manufacturing and sourcing operations.
To offset potential disruptions, Apple has begun stockpiling inventory, ensuring that a significant portion of its U.S. product lineup this quarter is produced outside of China. The majority of iPhones sold domestically will now be sourced from India, while Macs, iPads, and Apple Watches will increasingly come from Vietnam. Products destined for other global markets, however, will largely continue to be manufactured in China.
Cook emphasized that the company’s $500 billion investment in U.S. operations — which includes both infrastructure spending and operational costs — will fuel the expansion of chip and server factories in partnership with domestic manufacturers. Apple is currently sourcing 19 billion chips from across a dozen U.S. states, and is now building new facilities in locations including Texas, Arizona, California, and North Carolina.
Despite the challenges, Apple delivered better-than-expected earnings for the quarter ending March 29. The company reported $95.36 billion in revenue and $1.65 earnings per share, narrowly topping estimates. iPhone sales hit $46.84 billion, also ahead of projections.
However, Apple’s outlook for the third quarter remains cautious. Executives expect low-to-mid single-digit revenue growth, aligning with Wall Street forecasts of 4.28% year-over-year growth to approximately $89.45 billion. The company also warned that gross margins could take a hit, estimated between 45.5% and 46.5%, slightly below the market consensus.
Commenting on the strategy, Investing.com senior analyst Thomas Monteiro suggested that Apple’s more conservative buyback posture could indicate internal caution. “They’re preparing for uncertainty. This isn’t a red flag — but it shows they’re hedging,” Monteiro said.
In terms of product segments, Apple’s Services division brought in $26.65 billion, marginally under expectations. Greater China sales reached $16 billion, slightly beating forecasts. However, Wearables and Accessories revenue dropped to $7.52 billion, below the $7.85 billion estimate. iPad and Mac revenues came in at $6.40 billion and $7.95 billion, respectively.
On the investor front, Apple announced a 4% dividend increase, raising it to 26 cents per share, and authorized a new $100 billion stock repurchase plan — $10 billion less than last year’s authorization.
Cook concluded by reaffirming Apple’s commitment to a more diversified and resilient supply chain. “Concentrating all operations in one region is too risky. We’ve learned to balance and adapt,” he said.
As global economic uncertainties continue, Apple’s forward-looking strategy seems focused on resilience, infrastructure investment, and safeguarding long-term growth amid turbulent trade dynamics.
