In This Article
- Apple Stock Gets a Price Target Boost Before Earnings
- How are Apple Stocks Affected in China by Tariffs?
On Thursday, Apple revealed its first three-month report on its earnings for the current year, and that clearly shows the negative impact of the US-China tariff on the electronics industry. The investors are seeking the answer from the company to shift the policies that could impact the iPhone makers.
The analysts are keeping an eye on the trends, and this is causing uncertainty in the Apple stock price. This time, the stock prices are lower than ever in Apple’s history, and the analysts blame the “uncertainty in the economic outlook” as a reason.
Apple Stock Gets a Price Target Boost Before Earnings
Apple is showing the earnings details this week, and it will surely have an effect on Apple’s stock price. This time, the most critical factor that is going to affect the stock price is the tariffs imposed by the Trump administration.
According to Tim Cook, the CEO of Apple, the company has estimated a $900 million hit during the second calendar quarter.
How are Apple Stocks Affected in China by Tariffs?
China is one of the most expensive countries to export goods to in Trump’s tariff list, and this is going to make a great difference in electronic companies’ priorities. We all know that almost 90% of the production is done in China by the Apple company, and iPhones are one of such products from the company.
As the Trump administration has imposed tariffs on China, the company has to change the origin of product manufacturing, and this is causing a great change in Apple’s stock price in China. According to the first quarter’s report, the sales in China have slipped to $16 billion and are expected to fall by more than $1 billion.
The president says about the situation that the tariffs will come down eventually, but the experts say that they are not going to zero again, so there will be a high price for everything if they have to import it from China.
One of the main reasons the expert quoted behind this situation is China’s excellence in artificial intelligence, which is making the technical war between China and the US more furious. AI is ruling the world, and the country with its dominance is going to get the power.
We can see AI in almost every digital system, making them better, and Weborik Hub is integrating required AI features into their web solutions, making them efficient, providing better performance, and providing reliable features according to the user preferences.
While comparing the report with the same duration of last year, we come to know that Apple has 5% more sales growth this year. Moreover, the profit has jumped to 8%, and the credit for all this goes to Apple’s strategies and its recently lower prices for the Apple 16e model, which is the favorite of the buyers.
The CEO is working to maintain things, and the reports say that Trump’s country-to-country tariffs are causing tension among the industries’ stock prices, particularly for electronics. Although China is a great power for Apple because most of the production is carried out there, last year, almost 17% of Apple’s revenue was generated through China.
To deal with the current situation, Apple has to change the production origin, and this is causing the weak position of Apple stocks in China, but in other companies, it is working fine.
