What Happened?
Shares of iPhone and iPad maker Apple (NASDAQ: AAPL) fell 3.8% in the afternoon session after reports surfaced that the company might face significant engineering delays for its highly anticipated foldable iPhone.
According to Nikkei Asia, technical setbacks during the early testing phase could push the release of the "iPhone Fold" back into 2027. At the same time, analysts from Evercore ISI reported a slowdown in App Store growth for March, particularly in the gaming category.
Broader market conditions also contributed to the decline as geopolitical tensions involving Iran intensified. Investors grew nervous after President Trump set a strict deadline regarding the Strait of Hormuz, causing oil prices to surge. These rising energy costs renewed fears of high inflation and interest rates, which typically hurt large technology stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Apple? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Apple’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 6.5% as reports indicated that smartphones, computers, and a wide range of tech devices and components would be exempt from the reciprocal tariffs on U.S. imports announced on April 2, 2025.
The list of spared goods includes chips, solar panels, flat-screen TVs, flash drives, and memory cards.
However, President Trump added that the break might not last. He suggested new tariffs on devices like iPhones and tablets could come "very soon." This hinted that some tech and chip firms might still face some strain.
In a post on Truth Social, Trump also emphasized that these products remained "subject to the existing 20% Fentanyl Tariffs" and were merely being shifted to a different tariff category. Commerce Secretary Howard Lutnick echoed this sentiment, noting that the current exemptions were not permanent. Though when asked specifically about tariffs on iPhones, President Trump offered a somewhat imprecise response: "There'll be maybe things coming up... I don't want to hurt anybody, but the end result is we're going to get to the position of greatness for our country."
Despite the unclear outlook, the market reaction suggested investors viewed the temporary exemption as a short-term relief as it was likely to provide affected companies a brief window to adjust their operations and mitigate potential impacts on their businesses.
Apple is down 7.7% since the beginning of the year, and at $250.28 per share, it is trading 12.5% below its 52-week high of $286.19 from December 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $1,957.
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