Apple, the world’s most valuable tech company, just had a week to forget. In just three trading days, it lost a jaw-dropping $640 billion in market value. That’s almost the size of an entire economy — gone in a flash.
Its stock price dropped by 19%, catching even seasoned investors off guard. So, what caused this steep fall? And what does it mean for Apple users and shareholders?
Tariffs Spark Investor Panic
The big trigger? New U.S. tariffs on Chinese-made goods — includes several critical products like Apple products. Apple heavily invested in China to manufacture its devices, ranging from iPhones to MacBooks. Thus, as tariffs hit as high as 54%, it creates a major problem to control its price on their Apple product.
The fear is simple: if it costs more to make iPhones, it could either mean higher prices for consumers or lower profits for Apple.
Could iPhones Get More Expensive?
According to experts, if Apple chooses to pass on the price to its consumer, then the price on the products may surge as high as $350 on some models — that’s about 30% more than today. Thus, if the price of a top-tier iPhone could jump to $1,199 from $1,550.
Would customers still be willing to pay that much? Or will they turn to cheaper alternatives?
Damned If They Do, Damned If They Don’t
Apple is facing a serious problem; should they pass on these price changes to their consumers, they may simply walk away. However, if they choose to absorb these, it may have dire consequences on their profit margin — up to 15% less earnings per share, experts say.
Either way, the company is facing a lose-lose situation, at least in the short term.
Other Tech Giants Hurt — But Apple Felt It the Worst
While other technology firms such as Microsoft and Tesla also suffered losses, Apple’s losses were by far the largest. That’s because Apple has more exposure to the Chinese supply chain than much of its rivals.
This leaves Apple particularly exposed whenever tensions rise over trade between the U.S. and China.
Can Apple Bounce Back?
There’s some hope. Apple has already started moving some of its manufacturing to countries like India, Vietnam, and Thailand. But shifting supply chains is a long and complicated process — it won’t fix things overnight.
Still, Apple has a strong brand and loyal customer base. If any company can weather a storm, it’s probably Apple.
What Happens Next?
For now, investors are watching closely. Apple may need to make big decisions fast — whether that means reworking its supply chain, adjusting pricing strategies, or lobbying for tariff relief.
One thing is certain: Apple’s next few moves could shape its future in a big way.
