Wedbush: Apple selloff is overdone, company faces ‘low likelihood’ that iPhones will be subject to tariffs

“Wedbush analyst Daniel Ives wrote Friday that Apple Inc.’s selloff due to escalating trade tensions with China looks overdone,” Emily Bary reports for MarketWatch.

We continue to strongly believe that for a company that employs over 1 million Chinese workers with its flagship Foxconn factory and is a major strategic player within the China technology ecosystem…from a supply chain perspective Apple will not have major roadblocks ahead despite the loud noise. Taking a step back, we ultimately believe there is a low likelihood that Apple and its iPhones feel the brunt of the tariffs given its strategic importance domestically as well as [Chief Executive Tim] Cook’s ability to navigate these issues in the past with Trump and K Street. — Wedbush analyst Daniel Ives

Full article here.

MacDailyNews Take: Investors overreacting to Apple “concerns?” Say it isn’t so!

Buy low. Reap dividends. Sell high.

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  1. The sell-off is not overdone. This is exactly how big investors view Apple. Apple is seen as a weak investment and one to be sold off quickly at the slightest hint of negative rumors. It’s definitely not in the class of a Microsoft or Amazon which investors are just begging to own them. Tim Cook doesn’t instill any confidence at all. He’s so busy standing on his moral soapbox yakking about privacy and security while other CEOs are out there trying to build up their companies with massive and/or diverse revenue streams. Tim Cook needs to notice how Facebook’s value is constantly rising while Apple’s value is constantly sinking. That speaks volumes about consumers’ lack of concern about privacy and security.

    Pushing privacy and security isn’t going to get Apple anywhere. Those values will never be a useful selling point for consumers to buy Apple products. If Apple wants to sell more products they had better offer some hardware feature that no other company has or just charge less for their products. Android devices have taken over the world by storm and Apple keeps getting further behind in hardware sales. No matter how good a product is, if the consumer isn’t willing to pay for it, then it’s all in vain.

    Apple is owned by a lot of gutless shareholder/investors who seem to be scared out of their wits over these trade talks. One would think that Apple is the only tech company that’s going to have some major tariff problems. Any unrest in the world’s economy and it’s, “Apple is doomed.” It just really weird how Apple will be hurt by everything that goes on in China and other companies won’t. And if this is actually true then something is wrong with the way the company is being run as it’s more vulnerable to China/U.S. trade agreements than other companies. So, Tim Cook must have overexposed Apple to dealings with China and too much risk was taken.

    Owning Apple actually seems to be like gambling despite the relatively low P/E. You just never know when the share price is going to take a dive based on some speculative news.

    1. The man in the White House along with Google and Facebook have no morals on anything. Apple however has it’s own American weakness looking for cheap labor at any cost.

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