Believed to Be a Market Leader... "Over 30% Plunge Possible Amid Tariff War"

"Apple to Take a Direct Hit from Tariff War"
"Possibility of Over 30% Plunge by Year-End"

Amid the sharp decline in the New York stock market caused by U.S. President Donald Trump's tariff war and his pressure to dismiss Jerome Powell, Chairman of the Federal Reserve (Fed), an analysis has emerged that Apple will be directly hit in the future.

According to CNBC, a financial news outlet, on the 21st (local time), research firm MoffettNathanson warned that "Apple's stock price will be on a downward trend this year" and added, "There is a high possibility it could plunge by an additional 30% by the end of the year."

Believed to Be a Market Leader... "Over 30% Plunge Possible Amid Tariff War"

Amid the sharp decline in the New York stock market due to U.S. President Donald Trump's tariff war and pressure to dismiss Jerome Powell, Chairman of the Federal Reserve (Fed), an analysis has emerged that Apple will be directly hit in the future. Reuters Yonhap News

On this day, Craig Moffett, co-founder of MoffettNathanson, said in a letter sent to clients that "it will take more time for Apple to fully escape the forest of the tariff war." He pointed out the tariff risks posed by the Trump administration and the possibility of a U.S.-China trade war, and sharply lowered his earnings per share (EPS) forecast for Apple's 2026 fiscal year from $7.87 to $7.06.

Moffett stated, "For Apple, which is highly dependent on its supply chain in China, this tariff risk will be a significant obstacle," and predicted, "It will inevitably take a direct hit to its sales and profits." He further noted, "Apple is also falling behind in the artificial intelligence (AI) competition," explaining that "compared to other big tech companies, Apple's performance related to AI is lackluster, and the strong iPhone upgrade cycle is also limited." Moffett lowered his price target for Apple from $184 to $141. This suggests that Apple could plunge by more than 30% in the future. His investment opinion was 'Sell.'

The New York stock market is facing downward pressure as uncertainty in the U.S. economy intensifies. In particular, the market has been shaken significantly as President Trump pressures Jerome Powell, Chairman of the Federal Reserve. President Trump recently used the social networking service Truth Social to pressure Powell, saying, "If interest rates are not preemptively cut, economic growth could slow."

Adam Crisafulli, founder of investment information firm Vital Knowledge, pointed out, "President Trump's demand for rate cuts has created a situation that threatens the independence of the Federal Reserve," and added, "Investors are facing new macroeconomic uncertainties." He continued, "The recent simultaneous sharp declines in the U.S. stock market, the dollar, and Treasury bonds suggest that concerns over a Trump tariff-induced trade war are causing investors to begin exiting the U.S. financial and asset markets," and added, "No negotiation may be able to reverse this."

Meanwhile, Apple's stock price fell by as much as 20% following President Trump's announcement of global reciprocal tariffs. After the announcement of an exemption for electronic product tariffs, however, it has shown some signs of recovery.