Surprising China news sends Apple stock surging
From Yahoo Finance: 2025-04-14 16:30:00
Stock markets rallied after President Donald Trump exempted reciprocal tariffs on smartphones, computers, and electronic components, including semiconductors. The move followed a previous 145% tariff on Chinese goods, easing pressure on tech giants like Apple. Trump’s decision aimed to encourage companies to bring production back to the U.S.
Tech companies, like Apple, benefited from the exemptions as China manufactures a significant portion of iPads and Mac computers. Apple stock surged nearly 7.5% before closing up 2.2%. However, despite the tariff exemptions, Apple faces challenges such as weakening iPhone sales, with a 19% year-to-date stock decline.
Apple’s share of the global smartphone market fell to 18%, while Chinese Android brands captured 30%. In its recent earnings report, Apple reported record revenue and profit but saw iPhone sales lag. iPhone revenue declined nearly 1% in the quarter, with sales in Greater China down 11%.
Apple is set to report earnings for the fiscal quarter ending March 2025 on May 1. Analysts lowered Apple’s stock price target to $245 from $275 post-tariff exemption but maintained a buy rating. They expect a rally in Apple stock due to the tariff exemptions but cautioned about potential weak macroeconomic factors impacting iPhone shipments.