As Apple’s share experienced a historic sell-off in three consecutive days after Trump imposed tariffs on the three major supply chain countries: China, Vietnam, and India, the tech giant company hit its rock bottom since 2001. 

Apple’s Share May Rise Again  

Apple’s share has dropped 19% since last week, erasing more than $637 billion in market value. Amid this chaotic situation, Yahoo Finance reported that analysts are coming up with a silver lining, opining that the stocks may rise by 33% over the coming 12 months. The media platform wrote

“Based on the average analyst price target, they expect the stock to rise nearly 33% over the coming 12 months, the highest implied return in more than two years, and the stock’s 14-day relative strength index is under 23, among the lowest readings over the past decade, and under the 30 level that generally suggests oversold conditions.”

It means that analysts have set an average 12-month price target for Apple products, and these targets suggest that the stock could rise to 33% from its current price. It also signifies investors’ long-term confidence in Apple’s fundamentals despite short-term tariff risks. 

China-US Reciprocal Tariffs

Though some analysts gave an optimistic viewpoint, the current situation cannot be neglected after China responded with 34% reciprocal tariffs, further escalating the trade war. Moreover, Trump is set to impose an additional 50% tariff after China didn’t back off, accelerating tariffs to 104% on all Chinese imports. 

China opposed these additional 50% tariffs, calling it a mistake upon a mistake. 

Considering the tense situation between China and Trump, it is completely uncertain how Apple will regain its stock in the near or long-term future. 

The chief market strategist at Ameriprise Advisor Services Inc. Anthony Saglimbene stated that 

“The tariff situation really complicates things for Apple. What is it going to do? Raise prices? That will hit demand. Absorb costs? That will hurt earnings and margins. It is very difficult to assess prospects from here, and that’s why the market has reacted the way it has.”

With additional Trump tariffs, uncertainty rises. The bulls also seem skeptical about investing in Apple stocks. Though China is retaliating, other Apple supply chain countries, including India and Vietnam, will also shape the stock prices of the company.