From Nasdaq: 2025-05-07 21:30:00

Apple is bracing for the impact of Trump’s tariffs, estimating an additional $900 million in costs for Q3. However, they have room to raise iPhone prices by $100 to $200 without resistance. The company is shifting production to India and Vietnam to avoid higher tariffs in China, while their services business is growing rapidly to soften the blow. Despite a decline in stock price, Apple’s strong financials and device ecosystem position them for recovery.

Apple stock has declined by 18% this year, but their strong device ecosystem and healthy financials provide a solid foundation for recovery. Long-term investors may see the current pullback as an opportunity, while those uncomfortable with volatility may consider diversifying within a broader portfolio or consulting a financial advisor experienced in bear markets.

Apple is shifting production to India and Vietnam to avoid higher tariffs in China, with CEO Tim Cook indicating most devices shipping to the U.S. will come from these countries. The services business is growing rapidly, with a 13% increase in the first six months of the year, helping to offset the impact on hardware sales. This could aid in Apple’s recovery amidst challenging market conditions.



Read more at Nasdaq: Tariffs Sting, But Apple Stock Can Rebound to $250