Apple, an American corporation, heavily relies on an international supply chain for the production of its devices. Consequently, the company’s stock is being significantly affected by the newly announced tariffs, with AAPL dropping nearly 10% at market opening today—this represents a substantial blow to Apple.
AAPL stock declines notably amid tariff concerns
While Apple has seen consistent revenue growth from its services segment over the years, it remains fundamentally reliant on hardware sales.
Products such as the iPhone, iPad, Mac, Apple Watch, and AirPods are designed in California, but are predominantly manufactured abroad.
The sweeping tariffs introduced by President Trump on global imports pose a potential threat to Apple’s primary operations.
These tariffs are particularly burdensome in regions where Apple has a substantial part of its supply chain, such as China, India, and Vietnam.
In after-hours trading last night, Apple’s stock fell by 7%. As noted by my colleague Ben:
Investor anxieties have led to a sell-off of Apple shares, resulting in an after-hours decline exceeding 7%. In terms of price, $AAPL closed at $223 today, and is now around $207 in the fluctuating after-hours market.
As the market opened today, AAPL initially dipped by 8% but is now trading close to $203—indicating an impending decline nearing 10%.
The uncertainty continues regarding whether Trump will grant Apple any exemptions, similar to those provided during his initial term, which prevented the worst tariffs from impacting the company to avoid giving an advantage to foreign competitors like Samsung.
However, for the time being, Wall Street appears skeptical about Apple’s immediate future.
Do you believe Apple will increase its prices if the tariffs are implemented? Share your thoughts in the comments below.
