“Apple shares were down 2.5% in pre-market Monday after HSBC cut the tech giant’s price target over fears of its exposure to the trade war between the U.S. and China,” Elliot Smith reports for CNBC.
“HSBC Global Co-Head of Consumer and Retail Research Erwan Rambourg decreased Apple’s price target to $174 a share from $180, retaining a ‘reduce’ rating amid renewed Chinese growth risks and tariffs,” Smith reports. “Apple’s fall Monday was accentuated by a global sell-off in tech shares after Google suspended some business activity with Chinese telecoms giant Huawei over the weekend.”
“The analyst note suggested that recent tariff hikes on imports of Chinese goods into the U.S., and the subsequent retaliation from Beijing, could either force Apple to increase prices, driving down demand given consumer sentiment about recent iPhone launches being ‘too pricey,’ or take a hit on margins,” Smith reports. “‘Second, there is a risk that in the Chinese market, consumers accelerate the shift to smartphone substitutes notably by going to local brands with comparable functionality (Huawei, Xiaomi),’ Rambourg added.”
Read more in the full article here.
MacDailyNews Take: This too shall pass.
How the U.S.-China trade war could hike Apple iPhone prices – May 19, 2019
Apple’s tariff tradeoff: Raise prices, suffer margin hit, or build more products outside of China – May 17, 2019
Nomura Instinet cuts estimates on U.S.-China trade skirmish – May 17, 2019
Trump administration blacklists Huawei putting Apple at risk of retaliation from China – May 16, 2019
The media is lying to you about President Trump’s China tariffs – May 15, 2019
Analyst: Apple investors ‘overreacting’ to U.S.-China trade war and Supreme Court App Store ruling – May 14, 2019
Apple, Deere & Co, retail in focus as U.S. releases fresh tariff list – May 14, 2019
Gene Munster: Apple likely to be spared from China tariffs – May 10, 2019
Apple shares drop 7% this week on fears China trade turmoil threatens iPhone sales – May 10, 2019
Apple’s iOS 13 rumored to drop support for iPhone 6, iPhone SE and iPhone 5s – May 10, 2019
Apple not yet hurt by China tariffs, likely to simply absorb the added cost – May 10, 2019
Apple temporarily escapes new tariffs as U.S.-China trade war escalates – May 10, 2019
Dow futures fall after President Trump tweets ‘absolutely no need to rush’ on China trade deal – May 10, 2019
China overplayed its hand with U.S. President Trump on trade, and it could cost them dearly – May 9, 2019
Apple CEO Tim Cook optimistic about U.S.-China trade talks – February 12, 2019
President Trump says U.S. doing well in trade negotiations with China – January 23, 2019
China’s 2018 growth slows to 28-year low, more stimulus seen – January 22, 2019
Apple CEO Tim Cook: I’m very optimistic about U.S.-China trade talks – January 8, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019