Apple Inc. shares fell to an 11-month low on the secondary market on Tuesday, costing the iPhone maker the title of the most expensive firm listed on the stock exchange. Investors were abandoning shares due to concerns about the consequences of the looming trade war amid US President Donald Trump's duties. This is reported by UNN with reference to Investing.com.
Details
The technology giant's shares fell 1.8% to $169.49 at the close, the lowest level since May 2024. This happened after they lost 4.8% during the day. Tuesday's session for Apple Inc. became the fourth day in a row of sharp losses.
Apple's total market capitalization fell to $2.59 billion on Tuesday, making it the second most expensive company on Wall Street after Microsoft, whose value remained at $2.64 billion.
Apple's losses were mainly due to increased concern about the impact of US President Donald Trump's radical mutual trade duties, as well as China and Taiwan.
The Trump administration announced that from Wednesday it will continue the cumulative duty of 104% on all Chinese imports. And this is a step that will seriously increase the value of goods produced in China.
Addition
The main part of iPhone production from Apple, which is currently the company's largest profit, takes place in China, which potentially exposes the company to irreparable losses due to Trump's duties. Analysts have suggested that this trend could raise prices for Apple's iPhone by as much as $1,000.
iPhone could soar in price to $2300 due to Trump's tariffs - Reuters04.04.25, 11:55 • [views_11625]
Now Apple risks losing customers due to high import costs or will receive a devastating blow to margins if it covers part of the customs costs. Recent reports have shown the beginning of panic in Apple stores in the US. Consumers bought up equipment due to potential price increases.
Trade tensions between the US and China have wiped out nearly $1 trillion of Apple's market capital since its December peak of $3.2 trillion.
Nevertheless, BofA analysts said that the recent fall in Apple's shares has become an opportunity to buy, as the fall in the forward price-to-earnings ratio gave it a favorable risk/reward ratio.
Let us remind you
Apple urgently sent a batch of equipment from India to the USA on the eve to avoid new customs restrictions. Five cargo planes delivered smartphones and devices.