^{Source: New York Post}

Apple Inc. is taking a brutal beating on Wall Street. Over the last three trading sessions, the iPhone maker has shed nearly $638 billion in market capitalization, marking one of its steepest short-term losses in recent memory.

The company’s stock dropped another 3.7% on Monday, extending a three-day decline of 19% as investor anxiety over President Donald Trump’s aggressive new tariff strategy intensified.

While broader U.S. markets found some footing Monday—recovering slightly after a dismal previous week—Apple was one of the hardest-hit companies on the S&P 500 and Nasdaq, signaling deeper concerns about its exposure to global trade tensions.

Apple: The Most Exposed Tech Giant in the Trade War Crossfire

Apple’s heavy reliance on Chinese manufacturing makes it uniquely vulnerable in the current geopolitical climate. China currently faces up to 54% tariffs under Trump’s sweeping trade measures, and although Apple has diversified some of its supply chain to countries like India, Vietnam, and Thailand, those regions aren’t immune either. Trump's policies now target imports from those nations as well.

“Among the FAAMG stocks, Apple is the most exposed,” said Dan Ives, Managing Director at Wedbush Securities. “Their ecosystem is tightly linked with Chinese manufacturing and global trade dynamics. This isn’t just about China anymore—Apple’s entire supply chain is under siege.”

Apple vs. The Rest: A Bleak Snapshot of Big Tech

Apple isn’t alone in facing the heat, but it is certainly bearing the brunt. Of the seven megacap tech stocks, only Apple, Microsoft, and Tesla registered losses on Monday. The Nasdaq Composite Index, which tumbled 10% last week—its worst weekly performance in over five years—closed just barely in the green, underlining continued uncertainty in the tech sector.

iPhone Prices Could Soar: How Tariffs Might Hit Consumers

Apple may have two unappealing choices:

1. Raise prices to offset the cost of tariffs.
2. Absorb the losses, which would erode profit margins.

According to UBS analysts, the iPhone 15 Pro Max, currently priced at $1,199, could see a price hike of up to $350, or nearly 30%, if Apple passes the full brunt of tariff-related costs to consumers.

Meanwhile, Barclays analyst Tim Long warns that if Apple chooses not to raise prices, the company could suffer as much as a 15% reduction in earnings per share (EPS)—a significant blow for shareholders.

“The pricing dilemma is real,” Long noted. “If Apple raises prices, it risks alienating consumers in an already saturated market. If it eats the cost, its profitability takes a major hit.”

Can Apple Reroute Its Supply Chain?

To mitigate risk, Apple may accelerate its efforts to reengineer its global supply network. Shifting production away from China has already begun, with factories expanding in India and Vietnam, and new suppliers being explored in Malaysia, Indonesia, and Mexico.

But the move is easier said than done. As Nikkei Asia reports, over 90% of Apple’s major suppliers still operate in China, and building a comparable infrastructure elsewhere would take years—not months.

What This Means for Investors

Apple’s sharp market cap plunge—almost equivalent to the GDP of Poland—has shocked even seasoned investors. However, some analysts believe the sell-off may open buying opportunities for long-term investors who believe in Apple’s brand power, product pipeline, and ecosystem dominance.

Still, others urge caution.

“There’s no question Apple is a fundamentally strong company,” said Katie Stockton of Fairlead Strategies. “But until there’s clarity on tariffs and the broader trade policy, volatility will remain.”

The Bigger Picture: Tech, Tariffs, and the Future of Global Supply Chains

Apple’s stock slide is more than just a company-specific issue—it’s a symbol of how trade policies are shaking the foundations of global tech. The market is sending a clear message: geopolitical risks are now financial risks.

As investors navigate this uncertain terrain, many will watch whether the White House shifts course or doubles down—and whether companies like Apple can adapt quickly enough.

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