Technology

NEW YORK: Fears over steep upcoming tariffs on Chinese-made goods have triggered a wave of panic buying at Apple Inc.’s US retail stores, with weekend sales surging past last year’s figures. While Apple’s share price has tumbled in response to the Trump administration’s proposed levies, the looming threat has spurred short-term gains — as consumers rush to buy iPhones before potential price hikes take effect. Employees across multiple Apple locations reported unusually high foot traffic over the weekend, with many customers expressing concern that iPhone prices could soar due to the new tariffs. “Almost every customer asked if prices were going up soon,” said one employee, who requested anonymity as they were not authorised to speak publicly. Although stores didn’t see launch-day-style queues, staff described an atmosphere reminiscent of the holiday rush. “People are just rushing in, worried and full of questions,” one employee said, adding that Apple has yet to issue official guidance on handling these queries. Apple’s iPhone — its flagship and highest-selling product — is predominantly manufactured in China, which is now facing a proposed 54% tariff. The company has been working to mitigate the fallout, including ramping up inventory and shifting some production to India and Vietnam, both of which are currently subject to lower tariffs. According to a source familiar with the matter, sales at several major Apple stores exceeded typical levels for this time of year. Apple declined to comment. The company’s fiscal second-quarter results are due on May 1, offering CEO Tim Cook and CFO Kevan Parekh an opportunity to address the anticipated impact of the tariffs. During the last earnings call, Cook acknowledged the company was evaluating the situation but declined to elaborate. Apple’s stock has taken a significant hit — shedding over half a trillion dollars in market value across the final two trading days of last week. It marked the worst three-day decline for the company since the post-dot-com crash in 2001. In addition to India, Apple has expanded production in Vietnam — now manufacturing Apple Watches, Macs, AirPods, and iPads there. Other assembly sites include Ireland, Thailand, and Malaysia. At Apple’s flagship Fifth Avenue store in Manhattan, activity was brisk on Monday afternoon. Among the shoppers was Ambar De Elia, a tourist from Buenos Aires, who had planned to buy an iPhone 15 for her sister. But after seeing the market news that morning, she decided to act fast. “If we have the chance to buy something before the price goes up, of course we’re going to,” she said. Speculation has been swirling around just how much the 54% tariff could push up iPhone prices, with some analysts suggesting devices might eventually cost thousands of dollars. However, Bloomberg reports that Apple is expected to counterbalance the impact by pressuring suppliers and accepting lower profit margins — aiming to keep retail prices stable. The iPhone’s base price has held steady at US$999 since 2017. Retail employees believe the rush is far from over. “I wouldn’t be surprised if it continues over the next few days,” said one worker, noting that this period is typically considered off-season, with new models launching in September. Many customers, however, are choosing to upgrade now to avoid potential cost increases. The surge could provide a boost to Apple’s third-quarter results, which end in June. Since the company is currently selling stockpiled inventory, the real financial impact of the tariffs may not be felt until the following quarter.