Apple Shares Decline Amid Tariff Risks and Supply Chain Concerns
Apple Inc. shares faced downward pressure as analysts flagged a 17% potential decline from current levels, citing an "unattractive" valuation despite only a 2% year-to-date drop. Jefferies' Edison highlighted tariff risks as a looming threat, particularly with U.S.-China trade tensions escalating. The recent imposition of additional tariffs on Chinese imports raises questions about whether smartphone exemptions will persist.
Supply chain vulnerabilities came into sharp focus, with India-based production seen as insufficient to meet U.S. demand for the upcoming iPhone 17. Edison warned of margin compression from rising production costs and unfavorable product mix, while noting the possibility of forced onshoring to U.S. soil WOULD further inflate expenses. The dual pressures of trade policy and manufacturing constraints create what the analyst termed "more downside than upside" for the tech giant.
