TLDR
- Apple stock rose 2% in premarket trading to $199.15, recovering from Friday’s 3% decline after Trump’s tariff threats
- Trump threatened a 25% tariff on foreign-made iPhones unless production moves to the U.S.
- Apple continues diversifying iPhone production from China to India and other countries, with no U.S. manufacturing plans
- A potential U.S.-India trade deal could benefit Apple, as India faces a suspended 26% tariff while negotiations continue
- Technical analysis shows Apple testing key support at $190, with bearish momentum after breaking below $200
Apple stock climbed 2% in premarket trading Tuesday, reaching $199.15 as investors weighed potential relief from tariff threats. The recovery came after Friday’s 3% drop when President Trump announced plans for a 25% tariff on foreign-made iPhones.
Trump’s tariff ultimatum demands Apple manufacture iPhones domestically or face the levy. The company has remained silent about its response over the holiday weekend. Apple appears committed to its existing strategy of diversifying production away from China to India and other countries.
JUST IN: Apple plummets 3% in pre-market after Trump warns of 25% tariffs unless iPhones are made in the USA.
That’s nearly $90 billion in market cap wiped out pic.twitter.com/RrRl9C3sxd
— Michael Burry Stock Tracker ♟ (@burrytracker) May 23, 2025
Most analysts view U.S. iPhone production as economically unfeasible. Labor costs and supply chain complexities make domestic manufacturing prohibitively expensive. The company’s established Asian supply chain would be difficult to replicate in America.
India Emerges as Key Manufacturing Hub
Apple has concentrated efforts on expanding iPhone production capabilities in India. The country represents a crucial piece of the company’s supply chain diversification strategy. India currently faces a potential 26% tariff on U.S. imports under Trump’s broader trade plans.
However, negotiations between the U.S. and India have suspended the tariff implementation. This creates an opportunity for Apple if a trade agreement emerges. Wedbush analyst Daniel Ives identified Apple as a major beneficiary of any U.S.-India trade deal.
“If the U.S. announces a trade deal with India over the coming weeks we continue to believe one of the biggest beneficiaries is Apple and its iPhone supply chain capabilities,” Ives wrote. The analyst sees this as the biggest short-term catalyst for the stock.
The timing could prove critical for Apple’s manufacturing strategy. The company has invested heavily in Indian production facilities. A favorable trade agreement would validate this approach while avoiding costly U.S. manufacturing shifts.
Technical Pressure Mounts at Key Levels
Despite Tuesday’s premarket gains, Apple faces technical headwinds at crucial support zones. The stock has struggled to maintain the psychological $200 level. Recent trading shows a breakdown below an ascending trendline on the 4-hour chart.
Apple now trades near a multi-session demand zone between $193 and $190. The stock has failed repeatedly to break resistance at $208-$213. This failure has created a bearish structure with lower highs forming.
Technical indicators point to continued pressure. The 4-hour Bollinger Bands are widening with price riding the lower band. The RSI has dipped into oversold territory, suggesting further downside potential.
On the weekly chart, Apple failed to hold the 0.382 Fibonacci retracement at $203.55. The stock now hovers near the 0.236 level at $190.34. A break below this level could target $179.94, a key support shelf.
Both 20-day and 50-day exponential moving averages slope downward. This confirms the current bearish momentum in the stock. The immediate focus centers on whether Apple can hold the $190 support zone.
A failure to sustain above $190 could trigger further declines toward $180. However, a reclaim of $200 with volume might signal a potential reversal. Until then, the bearish structure remains intact with resistance at $202.75 and $208.
Apple stock closed Monday’s session at $195.23, consolidating above the critical $190 support level while investors await developments on both tariff negotiations and potential trade agreements.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
