Apple has just lost $638 billion faster than one can say “Hey, Siri, where did my money go?” This is truly becoming a Wall Street nightmare, as Apple stock undergoes a series of bashing from this avalanche of tariffs that makes professional investors squeeze their eyes shut in disbelief. Apple is not a newcomer to such great swings in the market, but it certainly has had a pretty good wipeout over the past three trading days. In the wake of President Donald Trump’s announcement of an extensive 104% tariff on all products coming from China, the high-tech giant lost an enormous $638 billion in market capitalization. That’s more than just a bad day at work, it is a more critical matter than just the market valuation of either Visa or Walmart gone in a flash.

As of April 8, 2025, Apple stock was up 1.22% in premarket trading to $183.67, representing the first hint of green since the tariff announcement sank investor confidence. Don’t start celebrating just yet, this is just a piece of good news following unparalleled decline. Apple’s stock was down 19% in just three sessions, making it one of the worst performing Big Tech stocks in this volatility storm.

Apple Suffers the Most due to Tariffs

Though Apple has severely suffered during these past weeks, the broader market to some extent has retained some stability. As CNBC pointed out, of all the key technology firms, only Microsoft, Tesla, and Apple were still red on April 7. Apple is a different ball game, as it is being nailed into the ground. Analysts are calling it a “rout”, and that is an understatement.

Apple is worth less than Visa and Master-Card combined. Even more depressing is that the losses might come close to matching the combined capitalizations of Coca-Cola and Home Depot. If Apple had just decided to spend that $638 billion before watching it disappear with amazement into the market, it could have bought Samsung almost three times over or taken over IBM, McDonald’s, and PepsiCo with some pocket change left.

The key factor is that Apple is dependent upon China. After years of strategic diversification and billions poured into building alternate supply chains, China still remains to be Apple’s manufacturing stronghold. Now, under Trump’s tariffs, that connection has resulted in a direct financial hit.

Hoping for Delicate Pre-Market Rise

To be hopeful for the rise of Apple’s stock, investors are still holding on to a possible optimistic view that Apple might import and increase production of iPhones in India. If this actually holds true, it would then be possible for Apple to run away from the worst of the tariffs, at least for now.

On the other hand, it is not cost-effective or quick to shift the production. The United States lacks the skillful labor and infrastructure to take up Apple’s massive supply chain operations. India is getting increasingly involved in matters concerning Apple, but is still a great deal further from acting as a credible replacement to China in large quantities. Then there is another problem, the tariffs that Trump imposes are shifting. As they can be raised up to double in a few moments, and long-term planning would become virtually impossible. Not even domestic manufacturing ventures are free from constraints. Apple has its chipmaker TSMC setting up its things in Arizona, but again the chips rely heavily on imported materials, with final assembly taking place in Taiwan that screams future cost escalations and increased political risks.

Lesson for the Rest of Tech

Apple’s dilemma is more than just practically a textbook case for viewing just how fragile global tech supply chains remain against the future political risks. With tariffs and economic nationalism ramping up, every tech company tied to a complex chain of international logistics must be taking notes.

Right now, the slightest rise in pre-market trading indicates the glimmer of a hope, but it is hardly a rebound for them. With losses soaring into the billions, confidence shattered, and uncertainty still to come, the question has less to do with how Apple will recover, rather it should be concerned with how quickly Apple will adjust.