Apple’s Stock Suffers its Biggest Drop in More Than Two Years. Are There Still Two Potential Risks?

TradingKey - On March 10th, the US stock market experienced a Black Monday. Although Apple's stock price only dropped by 4.85%, Citi analysts pointed out that there are still two major risk factors for Apple's prospects.

On the 10th, driven by concerns about Trumpcession, the Nasdaq index plummeted by 4%, and Apple's stock price fell by 4.85%, marking its largest single-day decline since the end of September 2022.

Citi analyst Atif Malik recently lowered his expectations for Apple's iPhone business in 2025, citing the delay in the launch of the expected upgraded version of Siri, which is expected to add the Apple Intelligence feature.

Citi predicts that iPhone sales in 2025 will increase by 2% year-on-year to 232 million units, while the originally expected growth rate was 5%.

In addition, Trump's tariff policy has not granted any exemptions to Apple. Without tariff exemptions, assuming that 90% of Apple's products are manufactured in China and 40% of its sales revenue comes from the United States, Apple's gross profit margin may decline by 1.7 percentage points.

Apple received tariff exemptions during Trump's first term in office, but as of now during his second term, there has been no news regarding this.

Bank of America stated that increasing the prices of all Apple products sold in the United States may be a necessary measure to offset the tariffs. The bank expects that if there is no price increase, the EPS in 2026 is expected to be negatively affected by $0.26.