ANN/THE STRAITS TIMES – The Trump administration’s threat of massive new tariffs has sent Apple’s share price plummeting, but it also brought a short-term benefit: customers rushing to retail stores to buy iPhones.
Employees from different Apple locations across the United States (US) said stores were filled with customers over the weekend – with shoppers expressing concerns that prices will climb dramatically after the levies are imposed.
The iPhone is Apple’s best-selling and most important product. Most of the phones are manufactured in China, which is in line for tariffs of 54 per cent.
One employee said the store was slammed with people panic-buying phones. “Almost every customer asked me if prices were going to go up soon,” said the worker, who asked not to be identified.
Though stores did not necessarily see the kind of lines that come with an iPhone launch, the atmosphere was like a busy holiday season, employees said.
“People are just rushing in worried and asking questions,” one said, adding that the company has not provided guidance to stores on how to handle such inquiries.
The frenzy has translated to more purchases. Apple’s US retail stores saw higher sales over this past weekend than in prior years in at least some major markets, according to a person with knowledge of the matter. An Apple spokesperson declined to comment.
Apple will report its fiscal second-quarter results on May 1, giving chief executive Tim Cook and chief financial officer Kevan Parekh an opportunity to discuss the impact of the expected tariffs.
The stock market’s tariff meltdown has hit Apple especially hard. Its valuation fell by more than half a trillion dollars in the final two trading days of last week, and the stock suffered its worst three-day rout since the aftermath of the dot.com bubble in 2001.
The company has been taking steps to prepare for the tariffs, including stocking up on inventory.
In a bid to reduce the toll moving forward, Apple is steering more devices made in India to the US market. India is currently set to be taxed at a lower level than China.
Apple has also spent years shifting more of its production to Vietnam, which will have a slimmer tariff than China.
