Apple shares are coming off their longest sell-off in more than three years as escalating attacks from the White House threaten to further erode the company¡¯s profit outlook, suggesting the stock¡¯s struggles this year are far from over.
U.S. President Donald Trump on Friday threatened to levy a 25% tariff on the company¡¯s products if it doesn¡¯t shift iPhone production to the U.S. Shares fell 3% to end the week, their eighth straight negative session, the longest such sell-off since January 2022. The stock rose 1.7% on Tuesday.
Some analysts are skeptical that the tariffs will come to pass, but any movement in this direction will put the company in a position where it either has to absorb the higher costs, weighing on its earnings and margins, or pass along higher prices to consumers, which could erode demand at a time when Apple is already struggling with tepid growth and difficulties with its artificial intelligence offerings.
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