Apple Stock Plummets as Trump Tariffs Threaten iPhone Production
Apple's stock has plummeted, losing over 15% of its value, as investors fret over President Trump's China tariffs. This has led Microsoft to become the world's most valuable company, with Apple now trailing at just under $2.6 trillion.
Market experts, though unnamed, suggest that Apple faces a challenging situation with no clear solution to address the tariffs. The company's long-term investment in its current supply chains makes it difficult to shift production elsewhere. Moving even a fraction of Apple's supply chain to the US is estimated to cost the company significantly, both in time and money. Producing iPhones in the US could increase the price to $3,500 per device, and relocating just 10% of the supply chain could take three years and cost $30 billion.
Apple is exploring alternatives, such as shipping iPhones from India to the US, and seeking an exemption from the tariffs. However, with most iPhones produced in China, the potential tax on Chinese imports to the US could reach a staggering 104% from Wednesday. Trump's trade minister, Howard Lutnick, has advised Apple to produce iPhones in the US to create jobs and reduce dependence on Chinese labor.
Apple's future remains uncertain as it grapples with the impact of Trump's tariffs. The company's stock has taken a significant hit, and it faces complex decisions regarding its supply chains. While Apple explores options like producing iPhones in the US or shipping them from India, investors and consumers alike await the outcome of this high-stakes situation.
