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Apple Reduces Stock Buyback Amid Escalating Trade Tensions and Rising Tariff Costs
May 2, 2025 | Cupertino, CA
Apple Inc. made a decision to decrease its stock buyback plan because it needs to protect against worsening international trade conflicts. Apple Inc. established a new $100 billion stock repurchase authorization that will run through 2025 while decreasing from its previous $110 billion plan last year.
The company made this decision because newly implemented tariffs will cause additional expenses of almost $900 million during the current quarter. During the Q2 earnings call, Tim Cook indicated the increased challenges, including tariffs, acted as the primary reason for Apple’s altered approach to shareholder returns.
Apple has stepped up its initiative to expand its supply chain operations past China as a strategy to counteract the effects of the impact. The company boosted iPhone manufacturing capabilities in India while establishing new production facilities in Vietnam to produce iPads and MacBooks. The company has implemented these strategic moves to minimise its dependency on geopolitical events in the long run.
The external pressures failed to deter Apple from delivering higher than projected earnings during the second fiscal quarter of 2025. The company generated $95.36 billion in revenue together with $1.65 earnings per share, which exceeded Wall Street’s expectations. Following the announcement, investors sold their shares, which caused a 4% decrease in stock value because they feared future profit margins would decline and capital returns would decrease.
The revised buyback program from Apple receives industry approval as a strategic move to face worldwide economic instability and the escalating U.S.-China trade tensions.
Apple’s executives foresee robust long-term business expansion because they will maintain investment in services combined with their artificial intelligence programmer and their work on advanced hardware systems.
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