**Apple Inc.**: The tech giant’s stock price fell by 7.29% to $188.38, driven by fears of production disruptions due to potential Chinese retaliatory tariffs following escalating trade tensions with the US. Analysts warn of impending supply chain challenges ahead.
The E-Daily reports that Apple Inc. (AAPL) experienced a significant decline in its stock price, closing at $188.38 on the afternoon of 4th October, marking a 7.29% decrease from the previous day. This downturn is attributed to rising concerns regarding potential production disruptions stemming from retaliatory tariff measures enacted by China in response to trade tensions with the United States.
The turbulence in Apple’s stock price followed an announcement by former President Donald Trump, who proposed a steep 34% tariff on goods imported from China. In reaction, the Chinese government indicated that it might implement retaliatory tariffs on American products. The market’s apprehension centres around the fact that China serves as a crucial hub for Apple’s manufacturing operations. According to analysis from Evercore ISI, an estimated 80% of Apple’s total production capacity and about 90% of iPhone production occurs within China.
Investors are particularly worried that these tariff measures may lead to significant supply chain disruptions and increased production costs for Apple. As a result, there are concerns that such financial pressures could either inflate consumer prices or negatively impact the company’s profitability.
While Apple has yet to issue an official statement regarding the evolving situation, apprehension is swelling among investors about the repercussions of escalating U.S.-China trade tensions on Apple’s business performance. Market analysts caution that a prolonged trade conflict may lead to unavoidable consequences for Apple, highlighting the company’s reliance on its extensive supply chain in China. Experts predict that this dependency may result in increased stock price volatility in the near future, as the market continues to react to developments in the trade landscape.
Source: Noah Wire Services
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