Apple (AAPL) saw its market value plunge by more than $300bn on Thursday, making it one of Wall Street’s biggest casualties following Donald Trump’s latest tariff offensive.
Shares in the iPhone maker fell more than 9% by the close of trading in New York on Thursday, wiping out its market capitalisation, which dropped from $3.36tn to $3.05tn (£2.59tn to £2.35tn)— marking its largest one-day valuation loss on record. The stock rebounded slightly in pre-market trading, and it is currently hovering just above the flatline.
Trump’s tariff push targeted Apple’s (AAPL) key suppliers and manufacturing hubs across Asia, including China, Taiwan, India, and Vietnam, imposing hefty new tariffs on goods imported to the US. This move threatens to disrupt the production of nearly every Apple product, from iPhones to iPads, Macs, and accessories.
The bulk of Apple’s (AAPL) iPhones are manufactured in China, which has been slapped with a 54% tariff. If these tariffs remain in place, Apple faces a difficult decision: absorb the extra costs or pass them on to consumers.
The launch price of the cheapest iPhone 16 model in the US was set at $799. However, according to calculations from analysts at Rosenblatt Securities, the price could surge by up to 43%, potentially driving the cost of the phone to $1,142 if Apple is able to shift the burden onto customers.
For the higher-end iPhone 16 Pro Max, which boasts a 6.9-inch display and 1 terabyte of storage, the price could jump from its current retail price of $1,599 to as much as $2,300, should a 43% increase be passed down to consumers.