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Analysts weigh in on the impact newly imposed reciprocal tariffs by President Donald Trump on other countries and the effect it could have on Apple Inc (NASDAQ:AAPL) and its products, such as the iPhone.
The Apple Analysts: Rosenblatt analyst Barton Crockett maintained a Buy rating on Apple with a $263 price target.
Tigress Financial analyst Ivan Feinseth reiterated a Strong Buy rating on Apple and raised the price target from $295 to $300.
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Rosenblatt on AAPL: American icon Apple could be severely impacted by the tariffs, Crockett said in a new investor note.
"Trump tariffs could blow up Apple," Crockett said.
The analyst said the quick math suggests Apple could face $39.5 billion of tariff costs.
"We believe that close to 100% of iPhones sold in the U.S. are made in China, 90% of Macs, 80% of iPads, 90% of Apple Watches and 35% of Airpods."
The analyst said these products are also made in Vietnam. Tariffs on China and Vietnam are 54% and 46%, respectively.
"This looks pretty tough."
Without Apple raising prices, the analyst estimates that operating profits and earnings per share could be down by around 32% annually. Raising prices could offset demand, the analyst warned.
"We note that Apple's main rival in the U.S., Samsung, is based in South Korea upon which Trump just levied 25% tariffs. So Samsung, as it stands now, could be meaningfully competitively advantaged, tariff-wise."
Crockett also questions if China will retaliate and try to hurt Apple in the country to help its own local smartphone makers.
The analyst said Apple moving iPhone production to the U.S. would be "hard to do economically" and can't happen for years.
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Tigress on AAPL: Services growth and the integration of Apple Intelligence are future catalysts for Apple, Feinseth writes in a new investor note.