Worst Apple Falling Share Price Gets Saved in 2025

The feared $4,500 iPhone price was based on the Apple Inc. (NASDAQ: AAPL) smartphone being built outside China and with parts not made in China. iPhones had been built there for over a decade. The company could move production to India, but that would take years.

Trump’s 125% tariffs on Chinese imports threatened to jack up iPhone prices if production had to be moved to the United States. Last Friday, another new reversal was made on tariffs on electronic items imported from China, changing that math in Apple’s favor.

IPhone’s stock surged almost 10% on the good news. President Trump may change his mind again and put tariffs back on electronics made in China. So the optimism may be short-lived.

Apple Stock Graph:

Before Trump decided to eliminate some consumer electronic tariffs on Friday, Apple’s shares had fallen 30% this year. Morgan Stanley had cut its target based on China import news and because the company’s AI product was weak.

The iPhone price challenge dropped from the number one spot based on global market cap. Microsoft Corp. (NASDAQ: MSFT) recently took the crown. They have it back, but barely. Its market cap is $2.98 trillion, while Microsoft’s is $2.89 trillion.

Apple Inc. CEO Tim Cook quietly lobbied President Trump, and it has worked, at least for now.

The company’s success has been based on Chinese factories for years, and a large part of its revenue also comes from China. In the most recently reported quarter, its Greater China revenue was $18.5 billion out of the global total of $123.4 billion.

iPhone revenue for the same quarter was $69.1 billion. Apple Inc. cannot afford any erosion to iPhone revenue without its total top line being threatened. President Trump’s change of heart regarding China imports has given Apple a reprieve, but it may not last long.

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