The Trump administration’s announcement regarding substantial new tariffs has led to a significant drop in Apple Inc.’s stock price. However, this situation has also prompted a short-term influx of customers flocking to retail locations to purchase iPhones.
Employees across various Apple outlets revealed a surge in customer traffic over the weekend, with many shoppers expressing concerns about potential price increases once the tariffs take effect. A majority of iPhones, which are central to Apple’s product lineup, are produced in China, where tariffs are projected at 54 percent.
One employee reported witnessing a wave of customers anxious to secure devices before prices rise: “Almost every customer asked me if prices were going to go up soon,” the employee stated, wishing to remain anonymous due to company policy regarding public comments.
While the crowds did not match the long lines typical of iPhone launches, staff described the atmosphere as reminiscent of the bustling holiday season. “People are just rushing in worried and asking questions,” one employee noted, mentioning that there had been no guidance provided by the company on how to address such inquiries.
This customer frenzy has resulted in increased sales for Apple’s U.S. retail stores over the past weekend compared to previous years in at least several key markets. An Apple representative opted not to comment on this development.
The upcoming fiscal second-quarter earnings report on May 1 will provide Chief Executive Officer Tim Cook and Chief Financial Officer Kevan Parekh a platform to address the anticipated impact of the new tariffs. Cook previously indicated during a holiday-quarter conference call that the company was analyzing the situation, but refrained from offering further details.
The stock market’s tariff-related turmoil has particularly affected Apple, with the company’s market valuation plummeting by more than $500 billion during the final two trading days of last week. The stock experienced its most significant three-day decline since the aftermath of the dot-com bubble in 2001.
In preparation for potential tariffs, Apple is taking proactive measures, such as increasing its inventory. Reports suggest the company is shifting more production to India, where tariffs will be lower than those in China.
Additionally, Apple has been moving production lines to Vietnam, allowing it to mitigate some tariff impacts. This includes the manufacturing of Apple Watches, Mac computers, AirPods, and iPads, along with some Mac models produced in locations like Ireland, Thailand, and Malaysia.
Apple’s prominent Fifth Avenue store in New York was bustling on Monday afternoon. Ambar De Elia, a visitor from Buenos Aires, had intended to purchase an iPhone 15 for her sister but was compelled to act sooner after learning about recent developments on Wall Street.
Analysts and market observers are closely monitoring how a 54 percent tariff on Chinese products could influence pricing, with some predicting that iPhones might soon have price tags reaching into the thousands.
However, it is expected that Apple will implement various strategies—including negotiating with suppliers and absorbing some cost increases—to prevent prices from skyrocketing. The starting price for Apple’s flagship iPhone has remained steady at $999 since 2017.
“I think everyone is here because of the fear; they don’t know what’s going to happen,” De Elia commented. “If we have the possibility to buy something at a lower price, of course we are going to.”
One retail employee indicated that the surge in customers might persist in the coming days. Another noted that this period typically marks an off-peak season for sales, as new iPhones are generally released in September, yet many consumers appear eager to upgrade now.
This increased demand could bolster Apple’s third-quarter results, which extends through June. However, as Apple depletes its existing inventory, the ramifications of the tariffs may not be felt until subsequent quarters.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
