In This Article:
Apple (NASDAQ:AAPL) stores in the United States have experienced a spike in customer traffic, with consumers reportedly rushing to purchase iPhones over concerns that upcoming tariffs may drive prices higher, Bloomberg reported.
Several locations saw activity levels similar to peak holiday shopping periods. A store employee, speaking anonymously, told the outlet that nearly every customer inquired whether prices were about to increase.
While Apple has worked to reduce dependence on Chinese manufacturing, the company still produces a large share of its iPhones in the region. Investment firm Needham recently suggested that Apple's fiscal 2025 earnings could face a reduction of 28% or more if the U.S.China trade dispute intensifies and no exemption is granted.
In response to President Trump's decision to apply tariffs on imports from all countries, including China, Beijing introduced a 34% tariff on certain American goods. Trump has since escalated the matter, pledging to impose a 50% levy on Chinese products beginning April 9 unless the 34% charge is revoked.
China responded by stating it would fight to the end. Meanwhile, The Times of India reported Apple recently shipped five planeloads of iPhones from India to the U.S. to circumvent a separate 10% tariff. It's important to note that the stock's price return has plunged -16.69% in the last week, far outpacing the S&P 500's drop of -7.52%.
Likewise, its monthly decline of -22.60% is significantly steeper than the broader market's -10.06% slump. This trend persists over the 6-month and YTD periods, underscoring its ongoing underperformance relative to the sector median returns.
This article first appeared on GuruFocus.