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Apple loses $300 billion from tariffs-induced sell-off

Apple loses $310 billion amid tariff-induced sell-off; worst drop since March 2020, impacting tech stocks significantly.

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Apple loses $310 billion amid tariff-induced sell-off; worst drop since March 2020, impacting tech stocks significantly.

In Short

Tech stocks plummeted on Thursday, with Apple suffering a 9% drop following Trump’s tariff announcement, resulting in over $310 billion loss in market capitalisation.

This situation underscores growing trade tensions, as Apple faces challenges diversifying its supply chain amidst new tariffs impacting its key production countries.

Tech stocks dropped significantly on Thursday, with Apple leading the decline after President Trump’s tariff announcement.

Apple shares fell over 9%, marking the worst performance since March 2020, which resulted in a loss exceeding $310 billion in market capitalisation. Analysts have pointed out that Apple’s overseas production facilities are highly susceptible to these tariff changes.

Trump’s tariff plan affects around 185 countries, including major trading partners, with specific tariffs imposed on imports from China, the EU, Vietnam, Taiwan, and India, set to begin on April 9. The new 34% tariff on China compounds the existing 20% rate, leading to a total of 54%, which is critical for Apple as approximately 85% of its iPhones are produced there.

Analysts have raised concerns regarding exceptions and exemptions for companies wishing to establish manufacturing in the US, which Apple has previously announced.

As trade tensions grow, Apple is diversifying its supply chain by increasing production in India and Vietnam. However, the new tariffs also target these countries, limiting options for Apple.

Concerns about pricing, margins, and global supply chain implications remain prevalent in the market. The overall impact of these tariffs is expected to exert significant pressure on tech stocks going forward.

Overall, other major technology companies also faced losses, with the group collectively losing nearly $913 billion in market capitalisation.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Tech

Apple unveils thinner iPhone Air to excite upgrades

Apple launches thinner ‘iPhone Air’ amid price hikes, aiming for customer upgrades despite challenges in AI features and tariffs

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Apple launches thinner ‘iPhone Air’ amid price hikes, aiming for customer upgrades despite challenges in AI features and tariffs

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In Short:
– Apple has introduced the new iPhone Air, priced at £999, to attract customers and update its smartphone line.
– The Air features innovations like a battery accessory, while Apple faces competition in AI capabilities.
Apple has launched a new “iPhone Air” model, marking its first significant smartphone release in years.
The new device, priced at $999, aims to attract customers following difficulties in delivering AI features.

This model replaces the Plus line and initiates a refresh since the iPhone X.Banner

The iPhone Air is designed to pave the way for a potential foldable iPhone next year, indicating Apple’s commitment to creating thinner devices. Analysts highlight challenges with foldable technology, expressing optimism about Apple’s advancements.

The iPhone 17’s base price remains at $799, with the cheapest Pro model starting at $1,099.

Tariffs will be avoided as Apple sources most iPhones from India. The company introduced a battery accessory to enhance the Air’s life, although it adds bulk.

Design Innovations

Apple has also introduced new AirPods Pro featuring a heart monitor and an Apple Watch that can detect high blood pressure.

However, the company faces criticism for lagging AI capabilities compared to competitors like Google. Investor sentiment remains positive following a strong sales quarter and positive developments regarding trade tariffs.

Futurum Group CEO Daniel Newman said that the iPhone 17 launch comes at a “really tough” moment for Apple.

“The problem with Apple is that everything that’s showing up today is, in fact, pretty incremental,” he told CNBC’s “Power Lunch.” “Yes, the phone is thinner, and yes, it looks great. We haven’t had a big supercycle in four years.”

Other devices

The new AirPods Pro 3 boast improved audio quality and noise cancellation. A new feature is real-time translation of conversations in foreign languages. They cost $249, the same as their predecessor.

Apple released three new Apple Watch models: the Series 11, which includes updates to the low-end SE and high-end Ultra models. Prices remain unchanged. Apple has added a new health feature to the devices, using machine learning to assess the risk of high blood pressure.

Apple’s iOS 26 will be available as a free software update on Monday.

Apple shares down after event concludes

Investors appeared indifferent to Apple’s latest product announcements, including the new iPhone Air model and Apple Series 11 Watch.

As a result, Apple shares fell by approximately 1.5% after the event concluded.


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Apple may increase iPhone prices despite tariff management

Apple may increase iPhone prices despite managing Trump-era tariffs effectively ahead of new model launch

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Apple may increase iPhone prices despite managing Trump-era tariffs effectively ahead of new model launch

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In Short:
– Tim Cook strengthened Apple’s U.S. investment with a $100 billion commitment despite tariff pressures.
– Analysts predict iPhone price rises due to increased component costs and enhanced features.
Apple CEO Tim Cook has successfully managed the company’s relationship with the White House amid tariffs.
Cook presented President Donald Trump with a gold plaque while announcing a $100 billion U.S. investment.
This was part of a broader commitment to spend $600 billion in the U.S. over the next five years.Banner

Despite these efforts, analysts predict Apple may raise iPhone prices due to ongoing tariff pressures.

CounterPoint’s Jeff Fieldhack noted speculation about a potential increase. While Apple has managed the impact of tariffs better than anticipated, it has incurred costs amounting to $800 million recently.

Pricing Trends

Apple has a history of cautious pricing strategies.

While it has not raised prices significantly in recent years, component costs have increased. Analysts expect upcoming iPhones to boast enhanced features, which could justify a price rise.

Additionally, reports suggest an entry-level Pro model may be eliminated, leading consumers to face higher starting prices for new devices. Cook previously stated that there were no immediate price changes to announce.


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Google avoids major penalties in U.S. antitrust case

Google avoids severe penalties in U.S. antitrust case as judge allows payments to maintain deals with Apple and others

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Google avoids severe penalties in U.S. antitrust case as judge allows payments to maintain deals with Apple and others

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In Short:
– U.S. Judge Mehta ruled Google can’t have exclusive search deals, allowing ongoing distribution payments.
– The decision supports collaboration with Apple and reflects changing market dynamics amid AI advancements.
U.S. District Judge Amit P. Mehta ruled that Google cannot secure exclusive search engine deals, allowing distribution payments to continue.
According to The Wall Street Journal, the judge acknowledged the potential harm to partners like Apple if such agreements were prohibited.The ruling follows Mehta’s previous finding that Google maintained a 90% search market share through illegal practices.

Mehta explained the changing market dynamics, particularly due to AI technology, arguing against drastic interventions that could disrupt competition.

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The decision is viewed positively by Wall Street analysts, as it allows Google to continue its $20 billion annual payment to Apple for being the default search provider.

This arrangement could further foster collaboration on AI services.

Future Innovations

The ruling impacts Google’s ability to create exclusive agreements and requires data-sharing to boost competition.

Critics argue the remedies are insufficient, with calls for an appeal regarding Mehta’s perceived leniency toward Google.

In related news, Google stated the judgement reflects industry changes, affirming that competition remains robust. The Justice Department plans to review the ruling’s implications for restoring competition in the search market.


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