The U.S. government's threat of imposing new tariffs has caused Apple’s stock prices to drop, while simultaneously significantly increasing the demand for iPhones. According to Bloomberg, after the announcement of a 54% tariff on products made in China, consumers are fearing a sharp price increase and are flocking to Apple’s official stores to make purchases.
Apple employees in the U.S. confirmed that over the past weekend, the number of customers surged, with nearly everyone asking if iPhones will soon become more expensive. Although the lines weren't as long as when new models are released, the situation is tense—concerned customers are rushing to buy Apple devices, resulting in a sales volume for the weekend higher than the same period in previous years. The company itself has declined to comment on the situation.
The market has already responded to the crisis. In just two days, Apple’s market value dropped by half a trillion dollars, and the stock is experiencing its worst decline since 2001. At the same time, the company is taking all possible measures to soften the economic blow, including increasing inventory and moving some production from China to countries like India and Vietnam, where tariffs are lower. It’s worth noting that in addition to the iPhone, Apple also manufactures the Apple Watch, Mac, AirPods, and iPad in China, and some Mac models are currently assembled in Ireland, Thailand, and Malaysia.
Analysts believe that iPhone prices could increase significantly, but Apple will exert pressure on suppliers to avoid sharp price hikes and will likely lower its profit margins. Currently, the starting price of the flagship model has remained at $999 since 2017.