Apple continues to face a massive stock slump, with its market capitalization shrinking by nearly $640 billion over the past three sessions.
As concerns escalate over the financial impact of President Donald Trump’s aggressive tariff policies, Apple’s shares dropped another 3.7% on Monday, deepening a three-day sell-off that has wiped out 19% of the tech giant’s value.
While the broader stock market showed signs of stabilizing, Apple remained under pressure.
Analysts warn that the company is highly exposed to trade tensions, particularly due to its reliance on Chinese manufacturing.
China is now subject to steep 54% tariffs, and although Apple has diversified production to India, Vietnam, and Thailand, those regions are also facing tariff hikes under Trump’s sweeping plan.
Among the tech sector’s “Magnificent Seven,” Apple is experiencing the sharpest losses.
On Monday, only Apple, Microsoft (MSFT), and Tesla (TSLA) closed lower, while the Nasdaq barely eked out a 0.1% gain after last week’s brutal 10% plunge — its worst performance in more than five years.
Adding to the market anxiety, CNBC’s Jim Cramer said he believes an economic recession is likely because of the new tariffs.
However, he urged investors not to panic sell.
‘Major banks will not fail’
Cramer emphasized that while the tariffs are “real trouble” for the US economy, the financial system remains strong, and he doesn’t foresee a repeat of the Great Recession.
“We don’t believe that the whole economic system’s in jeopardy. We don’t believe that major banks will fail,” Cramer said.
He added that President Trump could ease market fears simply “with the stroke of a pen” by showing a willingness to negotiate trade terms.
However, if the president focuses solely on punishing China rather than reworking trade relations, investors may face a “real problem,” Cramer cautioned.
Meanwhile, analysts believe Apple will either need to raise product prices significantly or absorb the additional tariff costs.
Apple $AAPL is now trading below the price Warren Buffett and Berkshire Hathaway sold it at last year
UBS estimates the price of Apple’s high-end iPhone could jump by around $350, or about 30% higher than its current $1,199 price tag.
Barclays analyst Tim Long warns that failing to adjust pricing could slash Apple’s earnings per share by as much as 15%.
There’s also speculation that Apple might rearrange its supply chain to import from countries facing lower tariffs.
However, such a shift would take time, meaning investors could see continued volatility in Apple stock in the near term.
Cramer concluded that while the stock market may not have hit bottom yet, there are plenty of beaten-down stocks that could present buying opportunities.
He advised investors to stay patient and avoid making emotional sell decisions during this period of uncertainty.
Apple’s deepening stock rout highlights broader risks for US technology giants as trade tensions and global economic uncertainty continue to rattle investor confidence.
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