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Apple may have to raise prices of the iPhone to offset tariffs, says BofA - MarketWatch

1. Apple may face 10% tariffs under Trump administration, affecting pricing strategy. 2. A BofA analyst estimates a $0.26 EPS impact without price hikes. 3. A 3% price increase could limit EPS decline to $0.21, assuming lower sales. 4. Apple's production diversification includes manufacturing in India amidst tariff threats. 5. Current fiscal 2025 earnings estimates remain unchanged at BofA.

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FAQ

Why Bearish?

Imposition of tariffs will likely force Apple to raise prices, impacting sales and EPS.

How important is it?

Tariff implications are substantial for Apple's pricing; market strategies may need urgent adjustment.

Why Short Term?

The deadline for tariff introduction is approaching quickly, influencing immediate financial performance.

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