Even as Apple benefited from a rush of orders for its recently launched lower-priced iPhone 16e in the January-March period ahead of potential tariffs, Wall Street analysts still expect the company will report a small fall in iPhone sales. That would mark a second straight quarter of declines.

The Trump administration has so far spared electronics from tariffs, but Washington has signalled that some levies could come in the coming weeks. The uncertainty has sent shares of Apple, which makes 90% of its products in China, down more than 16% this year, and wiping off over $600 billion from its market value.

Apple will try to mitigate tariffs by shifting production of US-bound iPhones to India, Reuters has reported. Analysts expect the company to spread some of the tariff costs through its supply chain while keeping price increases to a minimum to avoid losing market share.

"Tariffs are a sword of Damocles for Apple – dangling, disruptive and politically charged," said Eric Schiffer, Chairperson of Patriarch Organisation, a California-based private equity firm that holds Apple shares.

--Reuters--