Apple Inc (NASDAQ:AAPL) stock declined on Friday after President Donald Trump, via a Trump Media & Technology Group Corp (NASDAQ:DJT) Truth Social post, threatened to slap a 25% tariff on the company’s iPhones sold in the U.S. unless it produces the phones beyond the country’s borders.
Trump said he had warned Apple chief Tim Cook against manufacturing iPhones in countries like India and others.
Apple is positioning India as an alternative manufacturing base as U.S. and China geopolitical tensions sparked concerns over iPhone pricing.
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Apple had said that in the June quarter, most of its smartphones sold in the U.S. would originate from India.
Apple is reportedly exploring a significant supply chain expansion in India through its manufacturing partner, Foxconn.
Foxconn plans to invest $1.5 billion in a new display module plant near Chennai, India. The facility will assemble iPhone screen components.
Apple reported fiscal second-quarter revenue of $95.36 billion, topping Wall Street expectations of $94.53 billion.
For the June quarter, the company projects revenue growth in the low-to-mid-single-digit range and forecasts a gross margin between 45.5% and 46.5%.
Wedbush analyst Dan Ives warned that iPhones made in the U.S. could cost as much as $3,500 or more than triple their current price if President Trump imposes up to 145% tariffs on Chinese imports. Cook said that the company expects a $900 million cost impact in the June quarter due to tariffs.
Price Action: AAPL stock is trading lower by 2.70% to $195.98 at last check Friday.
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