Apple is less vulnerable to increased trade tariffs from President Donald Trump, Bernstein analysts said Wednesday. Bernstein estimated that even if U.S. IT hardware companies increased prices by 20% due to higher tariffs, net profits stood to be materially impacted, especially for companies with lower gross margins.
Dell Technologies Inc. and HP Inc. appeared the most vulnerable, while IBM was likely to be the least impacted.
Bernstein analysts said Apple was less vulnerable than broader consensus would suggest, with its high gross margins able to absorb higher tariffs despite its high exposure to the tech supply chain, especially in China. The company is expected to see a 7% hit to earnings per share.
Trump has proposed steep trade tariffs on imported goods regardless of the country of origin.
On China, however, Trump has proposed a 60% tariff on all goods, and as much as 200% tariffs on goods from Mexico. While Trump may not need Congressional approval to impose the duties, the Republicans were seen winning a majority in both the Senate and the House of Representatives.
MacDailyNews Note: Bernstein rates Apple as “Outperform” (Buy) with a 12-month price target of $240.
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240 is not very high…
Novus Ordo Seclorum
— Elon Musk (@elonmusk) November 7, 2024
The best thing about tariffs is that the threat alone will get results without needing to do anything.
The orange shepherd has already cried wolf too many times. Chyyyyna holds the cards. They could literally shut down Apple in weeks if Cheeto pisses off Xi will his empty threats.
How conveniently y’all forget that Tricky Dick dropped trade restrictions with Communist China in 1970 and for the last 34 years US corporations have transferred manufacturing as fast as they could to the land of zero labor or environmental protections and zero democracy.
So you think Cheeto is going to snap his fingers and wave tariffs to bring it all back ?
How’s that Foxconn factory coming along in Wisconsin?
Biden signed the bipartisan CHIPS Act to actually reinvigorate domestic microprocessor manufacturing, which is a national security priority. Be sure to give him credit when those factories come online. He did that, not Cheeto.