On Monday, the stock market performed better overall, but Apple continued to struggle, losing 3.7% as concerns grew about the impact of President Trump’s tariffs. Apple has seen a 19% drop in the past three days, resulting in a $638 billion loss in market cap. The company is particularly vulnerable to trade wars due to its reliance on China, which faces high tariffs. Even though Apple has production in other countries, such as India and Vietnam, these countries also face increased tariffs under Trump’s plan.
Among the tech giants, Apple is facing the toughest challenges. Only Apple, Microsoft, and Tesla saw their stocks drop in the group of seven megacap companies on Monday. The Nasdaq, which had its worst performance in over five years last week, remained relatively stable on Monday.
Analysts predict that Apple may need to raise prices or absorb additional tariff costs once the new duties kick in. UBS estimates that prices for Apple’s highest-end iPhone could increase by about $350, or 30%. Barclays analyst Tim Long suggests that Apple may raise prices or face up to a 15% reduction in earnings per share. Apple could also potentially adjust its supply chain to source products from countries with lower tariffs.
Apple has not commented on the tariffs, but it is clear that the company is facing significant challenges due to the ongoing trade tensions.
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