The stock market on Monday, April 7, showed performance that was generally better than what was observed on the previous two trading days, but Apple got hammered again, losing 3.7%.
The mentioned technology giant is currently facing increased concerns that the tariff policy of United States President Donald Trump will deal a serious blow to the iPhone developer.
The selloff was the reason that Apple’s three-day rout was 19%. Against this background, the technology giant’s market capitalization wiped out $638 billion.
Analysts cited by the media claim that Apple is one of the most vulnerable companies in terms of the impact of the conditions and circumstances of the trade war. This state of affairs is largely due to the technology giant’s high level of dependence on China, which is facing US 54% tariffs. Also, for Apple, the problem in the context of the current configuration of global economic reality is that it has production in India, Vietnam, and Thailand. The mentioned countries also faced tariffs from the United States.
Among technological megacaps, Apple is currently going through the most difficult period. On Monday, among the Magnificent Seven, only Microsoft, Tesla, and the iPhone developer were affected by the stock drop.
Analysts quoted by the media claim that in the context of the current configuration of global economic reality, Apple will either have to raise product prices or eat additional tariff costs when new levies come into effect. UBS experts estimated that the highest-end version of the iPhone could rise in price by about $350, or 30%. Currently, the corresponding figure is $1,199.
Barclays analyst Tim Long expects Apple to raise prices, or the company could suffer as much as a 15% cut in earnings per share.
The technology giant has not yet commented on Washington’s tariff policy.
As we have reported earlier, Apple Moves Forward Through Criticism Because of Its Approach to AI.
