Trump's new tariffs caused Apple shares to plummet, but at the same time gave a short-term boost: customers rushed to stores to buy iPhones, Bloomberg reports.
Apple employees across the U.S. said stores were packed with shoppers over the weekend, worried that prices would skyrocket after the tariffs were imposed. Most of the iPhone, the company's main product, is made in China, which is set to face a 54% tariff.
"The store was slammed with people panic-buying phones. Almost every customer asked me if prices were going to go up soon," one employee said anonymously.
Although there were no lines like during the launch of the new iPhones, the atmosphere was reminiscent of the pre-holiday hustle and bustle. Apple did not give clear instructions to employees on how to answer questions about prices.
The result is a surge in sales. Apple stores in the U.S. have seen higher sales than in previous years, according to a source familiar with the situation. An Apple representative declined to comment.
Apple will report its second-quarter financial results on May 1, 2025, which will give management an opportunity to comment on the situation. The company has already taken steps to prepare, including increasing inventory and reorienting supplies from India and Vietnam, where tariffs are lower.
This surge in sales is expected to improve Apple's financial results in the third quarter.
By the way, according to the analytical company Wedbush Securities, Apple is most vulnerable to the new tariffs. The corporation has a significant dependence on production in China - about 90% of iPhones are made there.