Key Stats for Apple Stock
- Today’s Price Change: 3%
- Current Share Price: $195
- 52-Week High: $260
- AAPL Stock Price Target: $229
What Happened?
Apple (AAPL) stock fell 3% on Friday after President Donald Trump threatened to impose a 25% tariff on iPhones manufactured outside the United States.
In a Truth Social post, Trump stated, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The threat represents an escalation in Trump’s pressure campaign against Apple, which has been shifting iPhone production from China to India to take advantage of that country’s more favorable trade relationship with the U.S.
Trump told reporters Friday that the tariff would also apply to other smartphone manufacturers like Samsung (SSNLF) and begin at the end of June.
See Apple’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
The decline in Apple stock reflects investor concerns about the potential impact of tariffs on the company’s profitability and pricing strategy.
While UBS analyst David Vogt characterized the tariff threat as a “jarring headline” but only a “modest headwind” to earnings, potentially reducing annual earnings by $0.51 per share, the market appears focused on the broader implications of deteriorating relations between Trump and CEO Tim Cook.
Analysts primarily view a U.S.-made iPhone as economically unfeasible. Wedbush’s Dan Ives called the concept “a fairy tale that is not feasible,” while estimates suggest domestic production could raise iPhone retail prices to between $1,500 and $3,500, compared to the current $1,000 for an iPhone 16 Pro.
Supply chain analyst Ming-Chi Kuo noted it would be “way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US.”
Some analysts remain skeptical about whether the tariff threat will materialize. Wells Fargo’s Aaron Rakers wrote that Apple could potentially preserve its roughly 41% gross margin on iPhones by raising U.S. prices by $100 to $300 per phone.
However, this approach carries risks for consumer demand. Apple expects about $900 million in additional tariff costs for the current quarter and has acknowledged the difficulty of predicting tariff impacts beyond June.
With Apple also facing weak demand in China, the iPhone maker is navigating challenges in multiple key markets simultaneously.
The decline in AAPL stock suggests investors are reassessing Apple’s risk profile amid increasing trade tensions and the potential for sustained pressure from the Trump administration.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
