Apple Inc. (AAPL) has lost over $300 billion in market value, marking its worst drop since March 2020. The sell-off comes as President Donald Trump’s latest tariffs hit Apple hard, imposing a steep 54% duty on Chinese imports. While Apple has been diversifying its supply chain, Raymond James analyst Srini Pajjuri warns that the company is still facing “significant reciprocal tariffs,” with India-made products also subject to a 26% duty. The added costs, the Top analyst says, could lead to demand destruction in the U.S.
It is worth noting that Pajjuri ranks 885 out of more than 9,441 analysts tracked by TipRanks. He has a success rate of 54%, with an average return per rating of 14.9% over a one-year timeframe
Raymond James Warns of a Demand Crisis for Apple
Pajjuri warns that new tariffs could slash Apple’s 2025 earnings by up to 25%. With over 90% of its hardware built outside the U.S., the analyst believes that Apple may have to raise U.S. hardware prices by 30% to offset costs or absorb the hit, which would squeeze profits.
The analyst sees a real risk that higher prices will drive customers away, dampening demand in Apple’s largest market. He also doesn’t rule out retaliatory tariffs from China, which could further hurt Apple’s global sales. For now, Raymond James is keeping its estimates unchanged, waiting to see how long the tariffs last and how Apple navigates the challenge.
What’s Next for Apple Stock
Apple has been shifting production to India and Vietnam, but escalating tariffs there are making things even more difficult. If China retaliates, Apple could lose a key revenue stream in one of its most important international markets. According to Main Street Data, Greater China contributed $18.5 billion of Apple’s December quarter revenues. So, if China takes serious retaliatory measures, Apple’s sales could be at risk.
With Wall Street on edge, investors are watching Apple’s next move and bracing for what could be more pain ahead.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $250.71 implies 23.39% upside from current levels.
