While the broader stock market showed signs of recovery on Monday, Apple took another major hit, shedding 3.7% as concerns mounted over the impact of President Donald Trump’s new tariffs.
Key Facts
- Apple’s stock has plunged 19% in just three days, wiping out $638 billion in market capitalization.
- The company is among the most vulnerable in the ongoing trade war, with a 54% tariff on China-made products directly affecting its supply chain.
- Despite manufacturing expansions in India, Vietnam, and Thailand, these regions are also impacted by Trump’s sweeping tariff plan.
- Among tech giants, Apple is struggling the most—Microsoft and Tesla also saw losses, but other mega-cap stocks remained steady.
The Bigger Picture
The Nasdaq rebounded slightly on Monday after its worst week in over five years, but analysts warn Apple faces tough choices. The company will either have to raise prices or absorb higher costs once the tariffs take effect.
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UBS analysts estimate that Apple’s most expensive iPhone could see a $350 price hike—a 30% increase from its current $1,199 price tag. Barclays’ Tim Long predicts that unless Apple adjusts pricing, its earnings per share could drop by as much as 15%. The company may restructure its supply chain to reduce reliance on high-tariff imports.
Short-Term Shock, Long-Term Uncertainty
While tariffs sent Apple’s stock tumbling, they also triggered a buying frenzy. Over the weekend, Apple stores across the U.S. saw a surge in customers rushing to buy iPhones, fearing significant price hikes. Employees reported packed stores as shoppers anticipated higher costs, according to Bloomberg.
With mounting pressure on profitability, supply chains, and consumer demand, Apple faces a critical period ahead.
