US Consumers Rush to Buy iPhones as Tariffs Drive Price Sharply

The threat of new tariffs from the Donald Trump administration has sent Apple shares tumbling while simultaneously fueling a rush to buy iPhones. As Bloomberg reports, shoppers have flocked to the company’s stores, fearing a sharp rise in prices after the imposition of a 54% tariff on goods made in China.

Image source: apple.com

Apple employees in the US confirmed that the flow of customers increased sharply last weekend, with almost everyone asking whether iPhones would soon become more expensive. Although there were no queues, as at the launch of new models, the atmosphere was “on edge”. Worried people panic-buying Apple devices, whose revenue this weekend was higher than in previous years in the same season. The company itself declined to comment on the situation.

The market has already reacted to the crisis. In two days, Apple’s capitalization has fallen by half a trillion dollars, and its shares have suffered their worst fall since 2001. At the same time, the company is doing everything to soften the blow, increasing its reserves and moving some production from China to India and Vietnam, where duties are lower. Let us recall that in addition to the iPhone, Apple also produced Apple Watch, Mac, AirPods and iPad in China, and some Mac models are now also assembled in Ireland, Thailand and Malaysia.

Analysts predict that iPhones could become much more expensive, but Apple will likely pressure suppliers and reduce margins to avoid a sharp price increase. The flagship’s starting price has remained at $999 since 2017.

Apple CEO Tim Cook and CFO Kevan Parekh are set to report second-quarter results on May 1, where they may touch on the tariffs. While today’s surge in sales could support Apple’s third-quarter results, analysts say the real impact of the tariffs will come later.