Apple users rush to stores to buy iPhones as trust fades in its ability to beat Trump tariffs

Apple users are in a rush to buy iPhones as prices are expected to shoot up due to the 54% tariffs on its primary manufacturing country, China. This comes just a week after Apple shares dropped 19% from the tariffs announcement.

According to reports , Apple retail stores across the U.S. have registered increased shopping activity over the weekend, with shoppers “panic-buying” iPhones. An Apple employee reported, “Almost every customer asked me if prices were going to go up soon.”

Apple users fear that the new tariffs the Trump administration put on China and many other countries will cause iPhone prices to go up. One way this could go is that the price of the iPhone 16 could rise from $799 to $1,142, and the most expensive model could cost as much as $2,300. 

Even if Trump makes a trade deal with China, and even if the tariffs stay the same, it’s not clear how much of the price hike Apple would pass on to users. However, the mere thought of iPhones becoming more expensive is making some buyers act now rather than later.

Apple’s backup plan will keep the company safe for months to come

Apple brought iPhones and other goods from India and China to the US on five cargo planes in late March to avoid paying President Trump’s standard 10% tax that went into effect on April 5. This was reported by The Times of India.

The emergency orders came in over three days in the last week of March. “The company will temporarily not have to pay as much for new shipments because of the higher prices it will have to pay due to the new tax rates,” a source tells the Times.

This could keep Apple from having to raise prices right away. The company gets most of its goods from China, Vietnam, and India. Starting April 9, goods from these three countries will be taxed at 54%, 46%, and 26%, respectively. Also, as reported by Cryptopolitan, Apple is adjusting its supply chain strategy by increasing iPhone production in India.

This means that panic buying is good for the company and will help Apple’s bottom line in the second quarter. The company reports its results on May 1. However, the stocks are worth about $182, down from a high point of just over $260 in December 2024.

Will Apple get relief like they did during Trump’s first term?

Investors have long seen Apple as a safe haven because of its strong free cash flow, balance sheet, and buyback activity, all of which come from the fact that its goods are used by so many people worldwide. 

Even so, many analysts are still optimistic about the company’s future, especially after the huge price drop. Based on the average analyst price target, they think the stock will go up more than 30% in the next year. This is the biggest expected return in more than two years. 

This week, the stock’s 14-day relative strength index dropped below 23. This is one of the lowest readings in the last ten years and is below the 30 level, which usually means the stock is oversold.

Also, shares are selling at about 24 times expected earnings for the next 12 months, which is close to their lowest level in more than two years but still a little above their 10-year average.

Of course, the most important thing for the stock is what will happen with taxes. The company could see a huge boost in sales if it gets an exemption like it did during Trump’s first term. 

Analysts haven’t made any big changes to their estimates yet because they don’t know what will happen and because an exemption is possible. From last week to this week, the average estimate for Apple’s net earnings in 2025 has gone down 0.7%, while the estimate for sales has gone down less than that.

If a large amount cuts expectations, the stock will look more expensive because the price-to-earnings ratio would have a smaller denominator.

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