Apple faces higher tariffs

Article Excerpt

APPLE INC. $200 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 15.0 billion; Market cap: $3.0 trillion; Price-to-sales ratio: 7.6; Dividend yield: 0.5%; TSINetwork Rating: Average; www.apple.com) gets about half of its revenue from iPhone sales. The other half comes from sales of its Mac computers, iPad tablets and other products and services. The Trump administration now plans to impose a 25% tariff on smartphones imported from China and India. However, it’s unlikely that Apple will move iPhone production to the U.S. due to the huge expense of setting up new factories as well as higher labour costs. The new tariffs will also increase the $900 million in extra costs that Apple is already facing in the current quarter ending June 30, 2025. As well, higher iPhone prices would probably slow the upgrade cycle. Apple is a hold. hold…