President Donald Trump believes Apple May make his iPhone signature in the United States to avoid new prices. Needham analyst Laura Martin is not sold.
“I do not think that is one thing,” said Martin on “The Exchange” of CNBC on Tuesday, responding to a comment by the White House press secretary, Karoline Leavitt, about the technology giant, providing its manufacture of iPhone in America.
Martin said that Apple’s costs would skyrocket if he was starting to build his renowned product in the United States, she is not the only one at Wall Street, which raises this concern. Wedbush analyst Dan Ives said that an iPhone would cost $ 3,500 if it was produced in the country.
In addition, the Apple process moving its supply chain to the United States is taking years, said Martin. Most supply chain experts say that the manufacture of iphones in the United States is impossible.
When asked by a journalist on the production of a moving iPhone, Leavitt said Trump on Tuesday that Trump wanted to provide manufacturing jobs to the United States, she said he was thinking that the United States had the workforce and the resources necessary to manufacture the smartphone at the national level.
“He believes that we have work, we have workforce, we have the resources to do so,” she said about Trump’s position on the creation of iphones in the United States
“And, as you know, Apple has invested $ 500 billion here in the United States,” added Leavitt. “So if Apple did not think that the United States could do it, it would probably not have set up this big piece of change.”
Martin’s comments come as investors pour the Apple shares given his manufacturing exposure to China. The Asian country faces a cumulative rate of 104% just after midnight after Trump’s reprisals. Other countries where Apple manufacturers, such as India and Vietnam, are also faced with samples.
In total, Martin said that Trump prices will increase costs for Apple around 50% higher.
Apple stock struggles
Apple shares whipped during Tuesday session, the title slipped by almost 2%. The stock plunged around 20% in the last five days of negotiation, investors, investors have evaluated what the Trump plan meant for the well -known manufacturer of iPhones and iPads, among other products.
Apple, 5 days
UBS estimated on Monday that Trump’s reciprocal pricing plan could force Apple to increase the price of its most upscale iPhone, the 16 pro max, of $ 350 for American consumers. Martin warned that the increases in apple cost that drops for American consumers could increase inflation.
For investors, Martin said to take a break before buying the drop.
Most of the analysts have not yet adjusted profits for the company for the uncertainty concerning trade policy, noted the analyst. She said that traders could be more endless if the samples come into force as presented originally, or if the company faces other shocks.
“There are a lot of worst cases for Apple,” said Martin, listing reprisal measures from China or the invasive Taiwan country as two examples.
– KIF Leswing from CNBC contributed to this report.
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