By Akash Srram and Kanchana Chakravarty

(Reuters) - Apple's shares fell 5% on Friday after revising its share buyback plan, with CEO Tim Cook tagging a $900 million-related blow related to tariffs in a fierce China trade war in the middle of the quarter.

US President Donald Trump's tariff flip-flops have already messed up corporate plans, even for Apple, which, along with Microsoft, has been juggling the title of the world's most valuable company.

The company has been stockpiling potential supply chain rants and hits from rising U.S. import costs. But as consumer confidence slides, some analysts say Apple may face a weaker demand for iPhone in its domestic market.

Its decision to reduce its buyback mandate by $10 billion also marks a rare pullback, indicating a desire to retain cash in the face of uncertainty. Typically, it maintains or increases the repo level.

"The announced $100 billion buyback is lower than the $110 billion announced a year ago, and we find it a head grab because Apple can historically hold buybacks or increase IT authorizations."

Analysts warn that our tariffs on China could raise iPhone prices if Apple chooses to transfer additional costs to consumers. But, Cook said most of the equipment sold in the U.S. this quarter will be produced outside China.

Even if the White House continues to weigh further trade actions, last-minute exemptions for consumer electronics offer temporary relief.

On Thursday, Apple is stepping up efforts to move its supply chain from China to China, and now most of the U.S.-bound iPhones will be assembled in India, Cook said.

Apple reported quarterly sales of $95.36 billion and earnings per share of $1.65, surpassing market expectations. The company predicts low to median unit revenue growth consistent with expectations.

In China, Apple's revenue was $16 billion, slightly higher than forecasts, although competition from Huawei and slower AI launches continues to pressure market share.

If the losses continue, Apple will be expected to cut market value by more than $150 billion, and the bullish outlook from Microsoft earlier this week helped Windows-M-Maker become the most valuable company in the world.

Transfer supply chain

Apple's shift from China's manufacturing industry will include sourcing more chips from the U.S. and expanding its footprint in major states such as Texas, Arizona and Oregon, but acknowledge that the transition comes at a cost.