New York, January 20, 2026, 09:33 EST — Regular session
- Apple shares dipped roughly 1% in early trading as investors came back from a U.S. market holiday, reacting to new trade headlines
- Evercore ISI and Citi highlighted robust demand for the iPhone 17 ahead of Apple’s earnings report on Jan. 29
- Tariff concerns and rising component costs are rattling traders, while hardware stocks feel the heat following a Morgan Stanley downgrade
Apple (AAPL) shares dipped 1.1% to $255.53 in early Tuesday trading, edging lower as the broader market got off to a shaky start. The stock shed $2.72 from its previous close.
This move carries weight since Apple ranks among the largest components of both the Nasdaq and S&P 500. Even a slight dip can sway the indexes, particularly when risk appetite is subdued.
This trade hinges on timing. After the long U.S. holiday weekend, investors face a packed schedule of headlines and earnings reports, including Apple’s results coming next week.
“The weakness is coming from headlines stoking angst and worry over the road ahead,” said David Lundgren, chief market strategist at Little Harbor Advisors, as investors digested President Donald Trump’s newest tariff threats linked to Greenland. 1
Evercore ISI bumped Apple onto its “Tactical Outperform” list, signaling short-term optimism, and held onto a $330 price target, Barron’s reported. Citi, meanwhile, predicted Apple would top estimates with about 82 million iPhones sold but trimmed its price target to $315 from $330, pointing to worries over rising memory costs squeezing margins down the line. 2
Evercore has informed clients that Apple’s long-term supply agreements will help buffer short-term hikes in RAM prices—a key type of device memory—even though those safeguards will diminish over time, AppleInsider reported. The firm also pointed to weaker App Store game spending in some Asian markets as a cautionary signal. 3
The sector tape dragged the mood lower. Morgan Stanley cut North American IT hardware to “cautious,” flagging a “perfect storm” of slowing demand, rising costs, and pricey valuations. Dell, HP, and Hewlett Packard Enterprise all took hits. 4
Not everyone is buying into the tariff scare. Wedbush Securities analyst Dan Ives described the new threat as “clearly an overhang,” but said “the bark will be worse than the bite” as negotiations continue. 5
The downside is clear. If tariff discussions lead to real duties and suppliers raise component prices, Apple might get caught between rising costs and limited ability to raise prices for customers.
Traders are zeroing in on what’s next: iPhone demand, growth in services, and any margin updates related to parts costs. Much of the price action could hinge on forward-looking guidance, rather than the quarter that’s already closed.
Apple’s fiscal first-quarter earnings and conference call are set for Jan. 29 at 5 p.m. ET. 6
