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He will cry in Cobino.
This may seem like the title of a low -hurting love song, but it is in fact a brutal assessment of the arrow analyst in the field of high technology for how the experienced tariff program for President Donald Trump is to a chip at Apple’s ((Aapl)) Say.
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The markets continued in the last check, and Apple shares in particular decreased by 5 %. Cupertino, California, is a giant technology shares approximately 29 % of January.
“The Armageddon tariff launched by Trump is a full catastrophe on Apple due to its massive exposure to China’s production,” Dan Evez, a Wedbush analyst in an investor note. “[No] The American Technology Company is negatively affected by this customs tariff more than Apple, with 90 % of iPhone devices produced and collected in China.
Harmjdon can be good for Apple, as Trump threatened an additional 50 % tariff for China unless Beijing raises its revenge duties on US exports by April 8.
Trump says, “Don’t be weak!”
“Don’t be weak!” Trump announced a social media publication. “Don’t be stupid! Don’t be a Saniki (a new party that relies on weak and stupid people!). Be strong, brave and patient, and the result will be!”
Evis and his team did not get this greatness at all.
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Investment company analysts saw that Apple moves at very unconfirmed times in the supply chain during the Covid’s pandemic. At that time, the company said, we could have seen after March or June 2020 in quarters “, understanding and value of what could look at 2021 natural profits as normalization will happen.”
“This introductory situation is very different and there will be a very frightening possibility as the current tariff list, as China reached 54 % and Taiwan by 32 %, will be devastating for Apple, the cost structure, and eventually the consumer request. … [It’s] Not a discussion … “Ivees said.
Evis said that the Apple company, which is scheduled to report the final results of next month, has become the most successful and valuable consumer products company in the world, with a proven base of 1.5 billion iPhone users and 2.4 billion iOS devices.
The innovation and designs that Curtino mastered are designed in manufacturing facilities in China. He explained that Foxconn produces iPhone, iPads, MACS, AirPods and other devices that Apple sells to consumers worldwide, including many of them in the United States.
“While Apple has diversified its supply chain to other parts of the world, including Vietnam, India and the United States … the hearts and lungs of the supply chain are strengthened in Asia,” Evz said. “We appreciate that the vast majority of iPhone produces outside China, more than 50 % of Mac products and 75 % to 80 % of iPad devices.”
Since the appearance of iPhone X in 2017, Apple has not exceeded the starting price for its main model of $ 999, Mark Gurman from Bloomberg I mentioned. But with the tariffs of definitions that reach the main production sources of Apple, the ghost has returned significantly.
The iPhone is the largest seller in Apple, with a total revenue for the first quarter of $ 69.14 billion, a decrease of 0.8 % from the previous year.
Analyst: The consequences of a tariff that is difficult to design
When Trump imposed definitions during his first term, Apple Cook CEO persuaded the president to exempt iPhone.
Apple has also taken steps to diversify its supply chain away from China, with the aim of isolating trade conflicts with this country. This led to new production lines in India, Vietnam, Malaysia, Brazil and Thailand. Diversification efforts were launched in 2020 when it struck Kofid.
Related: Star Analyst is bleeding in the technology market
If this new global system is already here to stay, Gorkman wrote from Bloomberg, “Apple has at least many ways to deal with it.”
In February, Apple said it plans to open a new factory for artificial intelligence servers in Texas as part of an investment of $ 500 billion in US Cook, who donated a million dollars to install Trump, at the time, “We are dealing with the future of American innovation.”
“The truth is that it will take three years and 30 billion dollars in our estimate to move up to 10 % of its supply chain from Asia to the United States with great disturbance in this process,” said Evis.
He said that our consumers is the fact that iPhone is worth $ 1,000 as it is one of the best consumer products that are made on this planet.
“He speaks so on that if consumers want iPhone $ 3500, we must make them in New Jersey, Texas or another country.” But “the concept of making iPhone devices in the United States is not amazing … at $ 1,000,” Ivees added.
The analyst, whose target price for Apple has reduced to $ 250 from $ 325 while maintaining its superior classification, said that most technology companies are currently expected to provide any instructions on calls in the first quarter during the next month, including Apple.
He said: “The tremendous uncertainty of declaring this tariff will lead to the destruction of the demand for consumers worldwide (it is difficult to understand” recession fears “, etc.) and the consequences of the price of this definition.
“We will set our numbers with a changing customs tariff policy/or sticks at this liquid time.”
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