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May 2 - Apple (NASDAQ:AAPL) Chief Executive Tim Cook said the company saw only a limited impact from tariffs during the fiscal second quarter but cautioned the effect beyond the June quarter remains unclear. Shares were down 4% on Friday trading.
Speaking on the company's earnings call, Cook said tariffs could raise costs by only $900 million in the current quarter if the trade environment holds steady. However, he noted that shifting policies, particularly under the Biden administration, made it difficult to predict longer-term effects.
Apple exceeded Wall Street expectations on both sales and earnings in the March quarter, yet shares fell about 3% in pre-market trading on Thursday. The company approved a $100 billion stock buyback and raised its quarterly dividend by 4% to $0.26 per share.
Cook said most iPhones sold in the U.S. next quarter will be made in India, while Macs and iPads will come from Vietnam, countries with lower tariff rates than China. China, however, will remain the key production base for international markets.
Apple is also accelerating its retail footprint in India, aiming to open more stores by the end of 2025. Cook emphasized the company would continue to lead with thoughtful and deliberate decisions.
Is AAPL Stock a Buy Now?
Based on the one year price targets offered by 43 analysts, the average target price for Apple is $235.59 with a high estimate of $300.00 and a low estimate of $141.00. The average target implies an upside of +10.44% from the current price of $213.32.
Based on GuruFocus estimates, the estimated GF Value for Apple in one year is $206.79, suggesting a downside of -3.06% from the current price of $213.32.
This article first appeared on GuruFocus.