The looming threat of 54% tariffs on iPhones has triggered a surge in customer purchases at Apple retail stores across the U.S., as consumers rush to buy devices amid fears of impending price increases.

Shoppers expressed significant concerns about rising costs, leading to a buying frenzy over the weekend that resembled the holiday shopping season.

This rush to purchase iPhones is expected to continue in the coming days, driven by ongoing consumer anxiety regarding potential price hikes.

While Apple has not publicly commented on the tariff situation, an earnings call is scheduled for May 1, 2025, where further insights may be revealed.

In response to the tariff threats, Apple is aiming to source up to 50% of U.S. iPhone demand from India, where tariffs are significantly lower at 26% compared to those from China.

To prepare for the tariffs, Apple is increasing inventory and shifting some production from China to countries like India and Vietnam, where tariffs are more favorable.

Apple's share price has taken a hit due to tariff fears, experiencing a valuation drop of over half a trillion dollars in just two trading days, marking its worst three-day performance since 2001.

Since April 1, 2025, Apple's stock has declined nearly 20% as investor concerns about the tariff impacts continue to mount.

Currently, Apple's flagship iPhone starts at $999, a price that has remained unchanged since 2017, although the company may absorb some costs to avoid passing them on to consumers.

In anticipation of the tariffs, Apple has stockpiled iPhones and other devices in the U.S., importing significant quantities just before the deadline.

Sales at Apple stores surged on April 5 and 6, 2025, surpassing those of previous years during the same timeframe.

Analysts warn that if the tariffs are enacted, iPhone prices could rise significantly, with some predictions suggesting costs could reach thousands of dollars.