“Apple investors are overreacting to the financial threat posed by the U.S.-China trade war and Monday’s Supreme Court ruling on the App Store, an analyst claimed on Tuesday,” Roger Fingas writes for AppleInsider.
“Although shares have traded down 11 percent since the start of last week based on both issues — mostly the threat of further tariffs — Apple can weather the storm, said J.P. Morgan’s Samik Chatterjee in a new memo,” Fingas writes. “‘Given that till date there has been limited impact from the tariffs on Apple’s hardware products, and likelihood of outsized losses from recent lawsuits appears limited, we believe the share price reaction can be seen as largely an overreaction,’ he commented. He admitted however that ‘there could be more downside’ on Apple shares in the near term if negativity grows around talks to end the trade dispute.”
“While Apple could raise iPhone prices by as much as 14 percent to keep up its high profit margins, it’s more likely that Apple will absorb the blow to keep prices in check, Chatterjee suggested,” Fingas writes. “This week’s Supreme Court ruling allowing an anti-monopoly case to proceed against Apple will probably have ‘limited’ impact as well, Chatterjee said.”
Read more in the full article here.
MacDailyNews Take: People tend to fear the worst. It almost never happens.
To fear the worst, oft cures the worst. — William Shakespeare
Be fearful when others are greedy and greedy when others are fearful. ― Warren Buffett.
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