Categories AlphaGraphs, Technology, U.S. Markets News

Market on alert after Trump’s tariff threat adds to Apple rout

Analysts’ outlook on Apple (AAPL) has never been as dismal as it is now, and the sentiment is turning from bad to worse with each passing day. The stock lost nearly a quarter of its value after the downward spiral started last month.

As it entered the bear market, the average rating on the iPhone-maker oscillated between neutral and hold this month when a section of analysts stripped the stock of the buy tag. Already under pressure from the falling iPhone shipments, Apple encountered a fresh challenge this week after President Trump announced a 10% tariff on iPhones and MacBooks manufactured in China.

Apple Product's iPhone, iPad and Mac Unit Sales

Once implemented, the tariff will definitely eat into the company’s profitability, with some estimates hinting at a $1.5-billion impact. There would be a proportionate increase in costs if the government raises the import duty to 25% in the future, as warned by Trump. A steep hike in product prices at this juncture – to absorb the additional cost related to tariff – might drive away potential iPhone customers.

Considering the lukewarm market response to the latest models of the popular smartphone, the current slump is likely to stay for some time. While the broader market remains optimistic about Apple’s long-term prospects, the company would have a tough time tackling the crisis if Trump walks the talk.

And, its ripple effect will reflect in the operations of Apple’s suppliers who are already worried about the shrinking orders. The market values of the top suppliers took a beating recently after the outlook for the upcoming quarters was slashed.

Apple supplier Foxconn looks to cut costs and jobs in preparation for tough year

Apple came in Trump’s firing line apparently due to the company’s extensive dependence on China for production. The president has urged the Apple management on multiple occasions to bring the production of iPhone to the US. Trump’s announcement about his latest plans for Apple came weeks before the latest hike in tariffs on Chinese products, worth $200 billion, from 10% to 25% comes into effect.

Some market watchers are of the view that the president is threatening Apple with the import duty in order to bring CEO Tim Cook to the negotiation table and persuade him to loosen the company’s China ties.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results

Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a

AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates

Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion

Comments

  1. Pingback: Lincoln Georgis
  2. Pingback: Admissions process
  3. Pingback: التحصينات
  4. Pingback: attendance
  5. Pingback: QS Stars
  6. Pingback: MBA degree Cairo
  7. Pingback: bodytone
  8. Pingback: Fiverr Earn
  9. Pingback: Fiverr Earn
  10. Pingback: Fiverr Earn
  11. Pingback: fiverrearn.com
  12. Pingback: fiverrearn.com
  13. Pingback: fiverrearn.com
  14. Pingback: fiverrearn.com
  15. Pingback: fiverrearn.com
  16. Pingback: fiverrearn.com
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: blue frenchie
  20. Pingback: french bulldog
  21. Pingback: chiweenie dog
  22. Pingback: aussie doodle
  23. Pingback: Yo.fan approval
  24. Pingback: Sem
  25. Pingback: swimsuit
  26. Pingback: micro frenchies
  27. Pingback: best mobile phone
  28. Pingback: best deals
  29. Pingback: future university
  30. Pingback: future university
  31. Pingback: bulldogs puppy
  32. Pingback: FUE
  33. Pingback: FUE
  34. Pingback: FUE
  35. Pingback: Move planning
  36. Pingback: Classic Books 500
  37. Pingback: FiverrEarn
  38. Pingback: FiverrEarn
  39. Pingback: Streamer
  40. Pingback: FiverrEarn
  41. Pingback: Sefton Playclub
  42. Pingback: partners
  43. Pingback: memory supplements
  44. Pingback: skincare
  45. Pingback: Sport analysis
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: Oil
  57. Pingback: education
  58. Pingback: Slot Online
  59. Pingback: Kuliah Termurah
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: cheap sex cams
  64. Pingback: fullersears.com
  65. Pingback: live sex cams
  66. Pingback: frt trigger
  67. Pingback: Asesoria Fiscal
  68. Pingback: efos y edos
  69. Pingback: 늑대닷컴
  70. Pingback: Slot Yunani
  71. Pingback: nang sydney
  72. Pingback: allgame
  73. Pingback: 918kiss
  74. Pingback: หวย24
  75. Pingback: pg slot
  76. Pingback: cybersécurité
  77. Pingback: electronic visa
  78. Pingback: 44 mag ammo
  79. Pingback: itsMasum.Com
  80. Pingback: ItMe.Xyz
  81. Pingback: itme.xyz
  82. Pingback: itme.xyz
  83. Pingback: ItMe.Xyz
  84. Pingback: itme.xyz
  85. Pingback: MasumINTL
  86. Pingback: itme.xyz
  87. Pingback: ItMe.Xyz
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top