Trump said again: iPhone should be made in America! Expert: Price may triple!

Karoline Leavitt, White House press secretary, said that President Trump believed that the United States has the labor and resources to produce iPhones at home. However, Needham analyst Laura Martin disagrees, stating on CNBC's The Exchange program that she believes' that's simply not realistic '. According to CNBC citing an analyst's prediction, if produced in the United States, the cost of an iPhone would be as high as $3500. Apple's stock price is currently in dire straits due to the uncertainty brought by tariffs.

Since Trump announced tariffs last week, Apple's share price has plummeted by 23% and its market value has evaporated by more than $770 billion, the worst four-day performance since 2000, giving up the throne of the S&P 500 index. The sharp sell-off of Apple shows that investors are suspicious of the company's ability to control Trump's tariff parity - Trump imposes high tariffs on China, Vietnam and India, which play an important role in the iPhone supply chain.

Anthony Saglimbene, Chief Market Strategist at Ameriprise Financial Services, said, "Tariffs have indeed put Apple in a complex situation. What should it do? Raise prices? Will it hit demand. Absorb costs? Will it damage revenue and profitability. It's difficult to assess the outlook at the moment, which is why the market is reacting in this way.

If produced in the United States, analysts predict that the cost of an iPhone would be as high as $3500. (European News Agency)

After China retaliated against the import tariff previously announced by the United States, Trump threatened to impose an additional 50% tariff on Monday, and Apple's risk became even greater.

Salibani said, "The direction of Apple will affect the entire market. If a tariff agreement is not negotiated, there is no reason for Apple to rise in the short term

Despite having strong free cash flow, a stable balance sheet, and an active plan to buy treasury stocks, the uncertainty brought about by tariffs currently has an overwhelming impact. The CBOE Apple VIX, which tracks the future volatility of the stock, has surged to its highest level since September 2020.

Nevertheless, many analysts remain optimistic about Apple's prospects. Bank of America believes that historic selling represents a buying opportunity. The average target price of analysts shows that the stock should be able to rise by over 40% in the next 12 months. The estimated price to earnings ratio of the stock has dropped to 24, close to the lowest level in two years, but still slightly above the 10-year average.

Tariff changes will be the core issue facing Apple. If Trump can be exempted as in his first term of office, the stock price will rebound significantly; On the other hand, Wedbush analyst Daniel Ives stated that keeping tariffs unchanged or escalating represents an 'economic apocalypse'. He recently lowered the target price of the stock.

Investors will now pay attention to Apple's financial report released on May 1st.

Source: World Journal