Apple shares were already down 15% for the year
Apple reported its quarterly earnings and beat expectations, but CEO Tim Cook told investors that the company expects the tariffs to add $900 million to its cost for the current quarter.
Shares of the iPhone maker fell in extended trading despite its best January-to-March period in over two years.
Sales crossed $95 billion, which could be due to increased buying by consumers fearing tariff-induced price hikes on products. However, Cook refuted the claim.
However, the tech giant’s sales in China, its second-largest market, dropped 2.3% to $16 billion in Q2, missing analyst estimates of $16.83 billion. Apple’s recent announcement of moving the production of products shipped to the US to India and Vietnam may add to its brewing troubles in the Southeast Asian country. It is already facing stiff competition from local phone makers.
Apple is also facing legal troubles
A federal judge recently ordered the company to open its App Store to third-party payments, which, according to a judge, Apple ignored. Now, the judge wants federal prosecutors to investigate the company for criminal contempt.
Apple announced a $100 billion share buyback to reassure investors and a 4% dividend hike to 26 cents a share.