Apple stock declined by 3%, dropping below its 200-day moving average for the first time in 10 months, in response to President Trump’s new tariffs on Canadian steel and aluminium. The Dow Jones index also fell by 1%, with overall US stock indices showing moderate declines.
Bank of America Securities reported a surge in selling of single stocks, particularly in the technology sector. Citi Research lowered its estimate for 2025 iPhone shipments to 232 million units, attributing this to delays in the rollout of improvements to Apple’s digital assistant, Siri.
Apple Smartwatch Sales Decline
Apple’s smartwatch sales fell by 19% in 2024, with competitors like Huawei and Xiaomi reporting significant growth. The Relative Strength Index for Apple shows a reading of 32, suggesting that the stock is not yet oversold.
The medium-term outlook indicates potential continued declines, with key support levels identified at $196, $180, and $164. The economic environment is creating uncertainties as the trade landscape evolves.
Apple’s decline below its 200-day moving average marks a pivotal shift in sentiment, particularly as it coincides with new US tariffs on Canadian steel and aluminium. This level is widely watched by traders, as dropping beneath it often triggers additional selling. The Dow Jones slipping by 1% alongside broader market weakness suggests that this is not an isolated event but part of wider concerns in US equities.
Bank of America Securities noted a sharp increase in selling pressure, especially in technology stocks. Such moves indicate that investors are repositioning, likely reducing exposure to companies vulnerable to supply chain disruptions and weaker consumer demand. Meanwhile, Citi Research’s downward revision of iPhone shipment estimates to 232 million units for 2025 highlights ongoing difficulties for Apple. A delayed Siri upgrade, which was a key feature in upcoming models, appears to have tempered expectations for future demand.
Apple’s smartwatch division is also struggling. With a 19% drop in sales last year, competitors such as Huawei and Xiaomi are gaining market share. If this trend continues, Apple may need to rethink its approach to wearables. The market’s reaction is telling—while the Relative Strength Index currently sits at 32, suggesting the stock is nearing oversold territory, there’s no confirmation that a bottom has been reached.
Support Levels And Economic Conditions
Looking ahead, further declines remain a possibility. Support levels at $196, $180, and $164 are areas to monitor, particularly if selling pressure intensifies. Current economic conditions, combined with uncertainty surrounding trade policies, mean that sentiment may remain subdued in the near term.
