Apple's stock has taken a severe beating over the past three trading days, shedding approximately $640 billion in market value amid escalating concerns over U.S.-China trade tensions. The tech giant's shares plunged nearly 20% during this period, with a 3.7% drop on Monday alone.
The dramatic decline comes as investors worry about Apple's heavy exposure to China, which faces potential 54% tariffs under President Trump's new trade policies. While Apple has diversified its production across countries like India, Vietnam, and Thailand, these regions are also subject to increased tariffs under the sweeping trade plan.
Industry analysts predict Apple will need to make tough choices to address the tariff impact. UBS estimates the company's premium iPhone model could see price increases of around $350, pushing the current $1,199 price tag up by 30%. Alternatively, if Apple absorbs the additional costs, Barclays projects the company could face up to a 15% reduction in earnings per share.
Among tech industry giants, Apple appears particularly vulnerable to trade war fallout. While the broader Nasdaq index managed to close slightly higher on Monday after last week's dramatic 10% decline, Apple joined only Microsoft and Tesla in posting losses among major tech stocks.
The company may explore supply chain reorganization to minimize tariff impacts by routing imports through countries with lower duties. Apple has declined to comment on the tariff situation and its potential response strategies.
This market value erosion represents one of the largest three-day declines in Apple's history, highlighting the broader market's concerns about escalating trade tensions between the world's two largest economies.