Apple’s actions (AAPP) fell last week after the announcement by President Donald Trump from radical prices. The action of the technology giant dropped by 9% on April 3 and dropped by an additional 5% on April 4, erasing nearly $ 300 billion in market value in just two days, ending the week at $ 188.38. These dramatic losses have let investors rush to understand the implications for one of the most precious American companies. While some analysts predict that this could fall more, consensual opinion on the long -term perspectives of the company remains positive.
Pricing impacts on the supply chain
The newly announced prices have targeted critical countries at the Apple manufacturing ecosystem. Chinese imports are faced with a high rate of 54%, while Vietnam and India – the alternatives to diversify the apparent – have also spared, with rates of 46%and 26%, respectively. Unlike Trump’s first term, when Apple has obtained exemptions for several products, there is currently no formal processes in place to request derogations at the moment.
Apple is now faced with a difficult choice: absorb price costs or transmit them to consumers. According to analysts, iPhone prices could increase up to 43% if Apple was to transfer all of the cost burden. This would push the iPhone 16 from the base from $ 799 to $ 1,142, while the iPhone 16 Pro Max Premium could reach $ 2,300. Morgan Stanley estimates that these prices could cost Apple 33 billion dollars per year and lead to a 26% reduction in share profits if the company does not take any mitigation measures.
For Apple, the path to follow probably involves complex negotiations with suppliers, potential price adjustments and possibly discussions with the White House. The movement of production in the United States presents its own challenges. Industry experts believe that assembly costs could drop from $ 30 per phone in China to $ 300 in the United States.
Analysts maintain a positive perspective for the moment
Analysts have maintained a long -term positive vision of the company despite its current challenges. Erik Woodring by Morgan Stanley assessed that Apple has a specific price exemption in response to reciprocal prices affecting the computer equipment, without significant change provided for their American investment commitment of $ 500 billion. Despite the significant American expenditure plan for Apple, exemptions would require presidential approval and Morgan Stanley considers that this is unlikely but possible. Woodring reiterated an overweight note for Apple, set a price target of $ 252.
Meanwhile, Laura Martin de Needham continues to support Apple with a purchase note, attributing it to the American strategic investments of the company and its emblematic brand status, which can positively influence the chances of exemption. However, she notes that prices may have a significant impact on income. Similarly, William Power, analyst Robert W. Baird, has maintained a purchase note with a price target of $ 260, citing Apple’s efforts to move production and maintain American investments as potential mitigation strategies against tariff impacts. Power recognizes the potential for short -term financial tension but remains optimistic about Apple’s capacity to manage commercial complexities and maintain its position on the market.
Apple is assessed a moderate purchase as a whole, based on the recent recommendations of 33 analysts. The average price of AAPPL shares is $ 248.75, which represents a potential of increase of 32.05% compared to current levels.
See more AAPPL analyst notes.
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