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Business Insider
167 days

Apple dodged Trump's tariffs the first time around. This time, iPhone buyers could take a hit.

1. Apple faces a 20% tariff threat on goods from China. 2. 70% of iPhones are made in China, impacting costs significantly. 3. Apple's options include avoiding tariffs or increasing product prices. 4. Sales in Greater China, accounting for 17% of revenue, might decline. 5. Apple is shifting production to other countries but faces challenges.

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FAQ

Why Bearish?

The increased tariffs could substantially raise costs, hurting profit margins. Historical examples indicate that similar tariff situations have usually led to stock price declines for affected companies.

How important is it?

The article discusses tariffs that directly affect Apple's supply chain and pricing strategy, making it highly relevant.

Why Short Term?

Immediate effects are likely, especially impacting costs and sales in China. Historically, tariffs have created swift impacts in pricing and stock performance.

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