Apple’s stock has plunged 22% in just over a week, falling from $221.1999 on March 31 to $172.217 today, shedding billions in market value. The drop stems from President Donald Trump’s tariffs, rising competition, sluggish growth, and pressure to shift iPhone manufacturing to the U.S.—a move experts call unfeasible.
Tariffs Spark Sell-Off
Trump’s new tariffs—54% on China (where 90% of iPhones are made), 46% on Vietnam, and 26% on India—hit today, with a threat to raise China’s rate to 104% if its 34% retaliation persists. Investors fear cost hikes, with a 9% stock drop on April 3 alone erasing $300 billion. Analysts say Apple faces a grim choice: raise iPhone prices by 17%-43% or cut margins by up to 32%.
Competition and Stagnation Bite
Samsung, Xiaomi, and Huawei are eroding Apple’s edge, especially in China, where sales fell 11% last quarter. Lackluster iPhone upgrades have slowed sales, with growth at a mere 2.3% annually versus the S&P 500’s 9.8%. “Innovation’s fading,” said Forrester’s Dipanjan Chatterjee, as rivals outpace Apple on price and features.
Domestic Manufacturing Push Meets Skepticism
Trump insists Apple can build iPhones domestically, claiming CEO Tim Cook agreed in a February 20 White House meeting to shift production from Mexico to dodge tariffs. “We have the labor and resources,” Trump said via Press Secretary Karoline Leavitt. But experts disagree. Needham’s Laura Martin, on CNBC’s “The Exchange” today, said it’s “not a thing,” estimating an iPhone made in the U.S. would cost $3,500 due to sky-high labor and supply chain costs. Wedbush’s Dan Ives echoed this, pegging the price at $3,500 and noting a 10% shift would take three years and $30 billion. Apple’s $500 billion U.S. investment pledge sidesteps mass production, leaving the idea dead in the water.
With tariffs escalating, competition intensifying, and growth stalling, Apple’s stock—still at 30 times fiscal 2025 earnings—faces a rocky road ahead.
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