Apple Inc.’s much-awaited quarterly earnings report failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China.

Apple is moving much of its production for U.S. markets out of China, responding to President Donald Trump's ongoing tariff policies.

Apple reported a decline in revenue for mainland China, Hong Kong and Taiwan for the quarter ended March 29, as the US tech giant continued to lose ground in the Chinese market amid a trade war with the US and fierce domestic competition.

Both by getting an exemption, and by toiling for seven years to diversify its iPhone manufacturing efforts outside of China, the $900 million estimate of tariff impacts in the third quarter is paltry compared to what it could have been,

The iPhone maker warned that it may take a $900 million hit from President Trump’s levies, showing that even powerful companies aren’t immune from the trade war.

Several companies have pulled their full-year outlook for 2025, with many citing market uncertainty exacerbated by Trump’s tariffs.