Apple’s stock has been hit hard amid concerns over the impact of President Trump’s tariffs, with a 19% decline over three days totaling a loss of $638 billion in market cap. The company faces heightened exposure to a trade war due to its reliance on China, which is facing significant tariffs. Despite having production in other countries, Apple is still vulnerable to increased tariffs as part of Trump’s plan.
Among tech’s megacap companies, Apple is experiencing the most significant downturn, with only three stocks dropping out of seven on Monday. The Nasdaq, after suffering its worst performance in over five years last week, managed a slight recovery on Monday.
Analysts predict that Apple will either need to raise prices or absorb additional tariff costs once the new duties take effect. Some estimates suggest that prices for Apple’s highest-end iPhone could increase by around 30%. Analysts warn of potential impacts on earnings per share if prices aren’t adjusted.
There is speculation that Apple may reorganize its supply chain to minimize the impact of tariffs. The company has not yet commented on the situation, leaving investors uncertain about how Apple will navigate through turbulent market conditions.
Photo credit
www.nbcnews.com
