Apple's stock fell by 4% early Friday after the company revealed the financial toll of President Trump's tariffs. While the tech giant plans to mitigate some of the effects by shifting production to India, analysts are concerned that this could just be the beginning of a more expensive road ahead.

During an earnings call Thursday, CEO Tim Cook stated that shipping devices to the U.S. from India and Vietnam—rather than China—would add approximately $900 million to Apple's costs for the June quarter. This announcement sent Apple shares down to $204.67 in early trading, marking a potential $130 billion drop in the company’s market cap, which currently stands at $3.2 trillion.

While this initial cost might seem relatively minor for a company of Apple's size, there are growing concerns that other countries like India and Vietnam could eventually face tariffs as well. Despite reports of an optimistic trade deal with India, Wall Street remains wary of the situation.

Potential for Larger Costs

Melius Research analyst Ben Reitzes warned that Apple could face a much steeper price tag than expected. He projected that the tariff-related expenses could climb to $1.8 billion per quarter in subsequent quarters, potentially continuing for several months beyond June.

Apple has also been working towards a goal of shifting all U.S.-bound iPhone production to India by the end of 2026, a move that could offset some of the tariff impact in the long term. Reitzes maintains a Buy rating on Apple, with a price target of $240 per share.

However, the uncertainty surrounding the trade dispute remains a key issue. Apple has not yet disclosed how Beijing might respond to the shift in its supply chain, as most of the company's products sold outside the U.S. will still be produced in China.

Stock Buyback and Market Concerns

Further compounding the uncertainty, CFRA analyst Angelo Zino noted that Apple’s $100 billion stock buyback plan was smaller than the $110 billion buyback announced last year. Zino pointed out that Apple usually maintains or increases its buyback programs, suggesting that the company may be anticipating further tariff challenges. Zino has a Buy rating on Apple, with a target price of $235.

In its latest earnings report, Apple did not factor in an economic slowdown in its forecasts, adding to concerns about the company’s outlook. Analysts are also questioning Apple’s innovation, particularly regarding the lack of updates to its virtual assistant, Siri, and the absence of new artificial intelligence features for the iPhone.

Revenue and Growth Concerns

Despite a 1.9% year-over-year growth in iPhone revenue for the first quarter, which came in at $46.8 billion, there are concerns that the introduction of a lower-priced model, the iPhone 16e, could be eating into demand for Apple’s premium devices.

KeyBanc analyst Brandon Nispel expressed doubts about Apple’s growth trajectory, writing in a research note, “We think Apple’s tariff mitigation efforts are likely better than most expect, but at the end of the day, we believe Apple is likely a little-to-no-growth business, where expectations continue to call for an acceleration in growth into 2026.”