The Apple Rush - Buying an IPhone or Apple Shares? 👀

On Wednesday, President Donald Trump announced a 90-day pause on new 10% tariffs for most U.S. trade partners to allow time for negotiations. This came just hours after goods from nearly 90 countries were hit with steeper reciprocal tariffs. However, Trump simultaneously raised tariffs on Chinese imports to 125%, citing China’s “lack of respect” for global markets. In response, China increased its tariff rate on U.S. goods to 84%.

Trump claimed that more than 75 countries reached out to U.S. officials to begin talks following the announcement. The news sent stock markets soaring, with the S&P 500 jumping 7% - its biggest single-day gain in five years - after four straight days of losses. Treasury Secretary Scott Bessett said the pause was always part of Trump’s plan, despite earlier denials from the administration.

When asked why he changed course, Trump said, “Well, I thought that people were jumping a little bit out of line… They were getting a little bit yippy, a little bit afraid.”

Companies in the spotlight

Apple is among the tech companies making headlines. According to Bloomberg, the Trump administration’s tariff threat on Chinese imports has led to a surge in iPhone sales. Fearing price hikes, customers rushed to Apple stores over the weekend, with employees reporting unusually high traffic and questions about rising costs. Most iPhones are made in China, which faced a 54% tariff before it was raised to 125%, pushing consumers to buy early.

To ease the impact, Apple is shifting production to countries like India and Vietnam, which face lower tariffs. Despite speculation that iPhone prices could soar, Apple is expected to absorb some of the costs to keep prices steady. The company reports earnings on May 1, when it may address the tariffs’ potential impact.

Shares of Apple were up more than 15% this month amid the tariff delay announcement, though they remain down 18% year to date. Analysts expect earnings to drop this quarter; however, a surprise beat could trigger a strong rally in the stock. Apple has a history of outperforming market expectations, which may keep investors hopeful ahead of its upcoming earnings report.

Conclusion

Market volatility driven by tariff announcements highlights the importance of diversification -not just for companies like Apple, but also for investors. Sudden policy shifts could trigger short-term surges or drops in stock prices, making it essential to spread investments across sectors, regions, and asset types to manage risk. For investors in Apple, it’s crucial to recognise that while panic-buying may temporarily boost sales, those spikes are often short-lived. Relying solely on momentary gains can present a skewed picture of the company’s long-term financial health.

When considering Apple as an investment, it’s important to watch how the company navigates global trade uncertainty. Apple’s efforts to shift production to countries like India and Vietnam reflect strategic moves to reduce dependency on China and manage tariff exposure. A diversified supply chain could improve stability in Apple’s operations and protect margins. For long-term investors, assessing how well Apple adapts to geopolitical pressures is just as important as tracking product demand and quarterly sales.

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