Apple’s collapse shows that approaching Trump is not a guarantee of security

Trump rates could lead to the price of an iPhone that increases up to 43 %, according to Rosenblatt Securities analysts. The most expensive iPhone 16 Pro Max would cost about $ US2300 ($ 3854), increasing from $ US1599 today, while the cheapest would cost $ US1142, compared to $ US799.

Alternatively, swallowing some of the price increases would lead to a huge success on the company’s famous profit margins, knocking on tens of billions of dollars out of profits.

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Thursday, the first trading session after the announcement of the rates, the Apple actions collapsed by 9.3 percent, drying $ 311 billion from the market value of the company-the second day down the value of a company (the drop was eclipsed only from the $ US600 in Nvidia in January). And his losses have continued to mount since then.

His actions have now abandoned 23 % from the “day of liberation”, marking the worst section of four days for Apple since 2000. The route has canceled over $ 770 billion dollars from the technology giant, knocking Apple from the first place in value in the S&P 500 index and putting its market capitalization under that of Microsoft.

“The tariff situation really complicates things for Apple. What will you do? Increase the prices? Will it affect the question. Absorbing costs? This will damage earnings and margins,” said Anthony Saglimbene, head of the Ameriprise Financial Services market. “It is very difficult to evaluate the perspectives from here.”

The risk became more acute with the additional withdrawal of 50 % imposed on Wednesday, Take import withdrawals for Chinese goods to an incredible 104 percent After China took revenge against previous rates with its withdrawals on US imports.

“Apple currently has extremely limiting options as well as exemptions and negotiations.”

Electronics Supply Chain Expert Mark Zetter

The White House confirmed that, unlike 2018, there were no carved for the products that Apple realizes.

The blow threatens to raise questions about Trump’s courteous, in addition to years of cooks, as well as a generational passage from China. While the strategy seemed to be prescient in a bilateral commercial war, Trump hit almost all countries with import duties.

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Cook was the architect of Apple’s passage in China a quarter of a century ago, and then his gradual misfortune. Hiring in 1998, shortly after Steve Jobs returned to save the company, he moved production from the United States to create a complex but devastatingly effective Chinese supply chain using contractors such as Foxconn.

In recent years, he has tried to relax it, pushing partners to establish factories in other Asian countries.

“The new Trump policies have thrown a key into the gears of the Apple supply chain, essentially canceling the tariff launch that Apple has targeted through the diversification of production geographs,” says Mark Zetter, an electronic supply chain expert.

“Apple has moved some production to countries like Vietnam, Thailand, Malaysia and India when the world was less polarized. But these strategies no longer apply.”

Vietnam, where Apple now produces AirPod, iPad and Apple Watch, was one of the worst affected by the new Trump rates, receiving a 46 %tariff rate.

Although this is less than the effective rate of 54 % in China, it does not take into account the heavy investments that Apple and its manufacturing partners have made to move a certain production in the country. China could also have a greater possibility of tariff relief: Trump said on Thursday that Beijing could guarantee concessions if he approved the sale of Tiktok’s US affairs.

Apple has also faced a political backlit for the disagreement from China, which represents about 15 % of Apple’s revenue.

According to reports, the authorities prevented qualified employees from leaving the country and the company has undergone silent criticisms in the state media. This could also have had an impact on Apple sales in China, which decreased for two years in a row.

This year, Apple should create about 15 % of its iPhones in India and ministers in the country have said that the company’s plans for a quarter of production are based there. This now remains an open question, with the country also deals with an American rate of 26 %.

Apple was not the only company to move production outside China in an attempt to avoid rates.

Nike – on whose cuisine it is found – now founded about 50 % of its footwear from Vietnam, with the rest of China, Indonesia and Cambodia. Its clothes are made in the same countries.

The shares of the sportswear brand dropped from Thursday by 12 % when investors unloaded the title. The slide has canceled more than $ 10 billion dollars from the Nike value in one day, seen by some as a refund for the company, which was reluctant to give in to Trump’s anti-dei pushing.

The rates can be canceled and cooks inevitably will try to use its relationship with Trump to push for clemency, both through lower rates in some countries and through exemptions. He has already promised to invest $ 5us00 billion in the United States in the next four years.

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Trump’s response, however, could simply request that Apple will bring production home.

At the moment, only a small number of high -end Mac computers are made in America. The president would see him as a claim of his policies if the stamp on the back of the iPhone said: “designed by Apple in California, made in America”.

Zetter says there is no possibility. “There is not only one position in the Americas capable of accumulating a workforce of over 800,000 as Foxconn Can in China,” he says. “Apple currently has extremely limiting options as well as exemptions and negotiations.”

To date, Cook has cleverly managed an unpredictable president. But this week he could represent his biggest test ever.