Wedbush Securities analyst Dan Ives raised his price target on Apple Inc. AAPL by 8% from $250 to $270, citing “incremental confidence” in the company’s India supply chain strategy amid ongoing tariff concerns.
What Happened: “This has been a core Street fear over the last month,” Ives wrote Thursday on X, noting that Apple’s manufacturing shift could “take the worst case scenario off the table for iPhone tariffs.” He also highlighted “improving” demand in China, a crucial market for the tech giant.
During Apple’s fiscal second-quarter earnings call Thursday, CEO Tim Cook revealed the company expects a $900 million cost impact in the June quarter due to existing tariffs. Cook emphasized Apple’s strategic pivot to diversify manufacturing bases.
“For the June quarter, we expect the majority of iPhones sold in the U.S. will have India as their country of origin,” Cook said. He added that Vietnam will now produce nearly all iPads, Macs, Apple Watches, and AirPods sold in the U.S.
Why It Matters: The manufacturing shift comes as Apple navigates potential tariff increases on Chinese imports. Cook explained that Apple’s current tariff exposure primarily relates to the February IEEPA-related tariff at 20%, affecting U.S. imports of Chinese-origin products.
Apple reported better-than-expected fiscal second-quarter results with revenue of $95.36 billion, exceeding analyst expectations of $94.53 billion. For the upcoming quarter, the company projects low-to-mid-single-digit revenue growth with a gross margin between 45.5% and 46.5%.
Previous analysis from Ives had warned that iPhones manufactured in the U.S. could cost as much as $3,500 if significant tariffs were implemented on Chinese imports.
Price Action: Apple Inc.’s stock closed at $213.32 on Thursday, up 0.39% for the day. In after-hours trading, the stock declined by 3.78% to $205.25. Year to date, Apple shares are down 12.52%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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