Apple Market Value Drops Nearly 20% in Three Days After Trump’s Tariff Announcement, Costing $640 Billion

The last few trading sessions have proven to be exceptionally challenging for Apple as the company grappled with the repercussions of a recent tariff announcement made by President Donald Trump. The decision to impose tariffs on regions heavily utilized by Apple for its intricate supply chain has led to a staggering loss of $250 billion in market capitalization initially. Unfortunately, the situation has escalated, resulting in a total decline of nearly $640 billion in just three days—nearly 20% of the tech giant’s total market value.

Analysts Suggest Pricing Strategies Amidst Tariff Challenges

In light of these developments, analysts are vocal about the urgent need for Apple to consider raising the price of its products or relocating iPhone manufacturing to less impacted areas. The U. S.government’s current stance against certain foreign nations, compounded by a whopping 54% tariff, places Apple in a precarious position. CNBC has reported that the company’s market capitalization continues to suffer under these harsh pressures.

With approximately 19% of its value diminished, Apple’s market worth has plummeted to $638 billion less than it stood just three days ago. The choices ahead are fraught with risks. A price increase could lead to reduced consumer demand, ultimately lowering annual revenue. Conversely, if Apple decides to bear the costs and absorb them without adjusting prices, this too could yield unfavorable results.

Ming-Chi Kuo, an analyst at TF International Securities, has previously indicated that maintaining current prices might result in a decline of 8.5% to 9% in Apple’s gross margins. Kuo has proposed potential remedies, suggesting a shift of iPhone production to India, where tariff exemptions could apply, allowing Apple’s supply chains to regain their competitive edge.

Bloomberg’s Mark Gurman casts doubt on the feasibility of relocating iPhone production to the U. S., even if that was one of Trump’s objectives. He asserts that, irrespective of tariff impacts, the rising labor and operational costs in the U. S.make any such transition unlikely. This reality reinforces Apple’s long-standing strategy of relying on overseas manufacturing to maintain cost-effectiveness.

For more detailed coverage on Apple’s market capitalization changes and potential strategies, visit CNBC.

Further insights and images can be found at Wccftech.