Apple Faces Historic Selloff Amid Tariff Risks

Apple Inc. is experiencing a historic selloff in its share prices, driven by concerns over potential tariffs on its products. The company's market capitalization has plummeted by nearly $640 billion over three days, marking one of the most significant declines in its history. Analysts attribute the downturn to fears that new tariffs proposed by the Trump administration could significantly increase the price of iPhones in the U.S., with estimates suggesting a potential jump of up to $350 per unit.

The proposed tariffs target Apple's production in China, where the majority of its iPhones are manufactured. This has led to a reevaluation by investors, many of whom are now balking at the increased risk to Apple's bottom line. The situation has sparked a broader discussion on the impact of trade policies on tech giants and the global economy.

The selloff has not only affected Apple's stock but has also sent ripples through the tech sector, with investors and analysts closely watching how other companies might be impacted by similar tariff risks. As the situation develops, all eyes will be on Apple's next moves to mitigate these challenges and stabilize its market position.

• Apple
• China
• Tariffs
• Trump

Related issues news

Is Apple going to be affected by tariffs?

Apple is heavily impacted by President Trump's new tariffs, which will hit the company's supply chain in China and other countries where it manufactures products.

Are iPhones exempt from tariffs?

Apple CEO Tim Cook applied a charm offensive on Trump that eventually resulted in an exemption to 15% tariffs that its Chinese-made iPhones would have been subject to. One of the reasons Trump waived the tariff for Apple was because it had a factory in Texas that makes its Mac Pro computers.

How much will the iPhone 17 cost?

Looking ahead, the iPhone 17 series would likely see price hikes as well. The iPhone 17 Pro Max, rumored to start at $1,199, could balloon to over $1,700. And for the option with 1TB of storage, that price could jump to $2,300. Another respected technology analyst suggests that could even be a conservative estimate.

How much does it cost Apple to make an iPhone 16?

Apple's total cost of parts for the iPhone 16 Pro (256GB), for example, will go from $550 to $820, analyst Wayne Lam of TechInsights told The Wall Street Journal.

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