Apple has cut its share buyback programme by $10 billion, citing cost pressures from shifting its supply chain due to ongoing US-China trade tensions.

Chief Executive Tim Cook said tariffs could raise costs by around $900 million this quarter as the tech giant adjusts production to limit exposure to the trade dispute under former President Donald Trump’s policies.

In a call with analysts, Cook detailed a $500 billion US investment plan, including new spending on server and chip factory development with manufacturing partners. He also confirmed that Apple is stockpiling devices, ensuring most units sold in the US this quarter are not made in China.

The shift signals caution from the world’s most profitable company. “We were expecting to see more buybacks,” said Investing.com analyst Thomas Monteiro. “This indicates Tim Cook is hoarding cash for difficult times.”

Despite the cautious outlook, Apple’s quarterly earnings slightly exceeded expectations. For the fiscal second quarter ended 29 March, revenue stood at $95.36 billion, with earnings of $1.65 per share, just above analyst forecasts. iPhone sales hit $46.84 billion, also ahead of estimates.

Shares fell 4.3% after the earnings release. For the current quarter, Apple projects low-to-mid single-digit revenue growth, consistent with analyst forecasts of 4.28% growth to $89.45 billion.

Cook said the company has not seen a consumer rush to buy Apple products in response to trade uncertainty.