From NASDAQ.: 2025-06-01 18:15:00

Apple has relied on cheap labor in China for manufacturing, but with tariffs, they are moving some production to India. President Trump wants iPhones made in the US, which could raise costs significantly. Analysts estimate a switch could cost Apple billions and raise prices by $40-$200 per unit.

Apple’s profits may take a hit if forced to manufacture in the US and pay high tariffs. Their supply chain would also be affected by tariffs on imported parts. However, their services segment, which generated $71 billion in gross profit last year, remains unaffected by tariffs.

Apple is facing threats from tariffs, antitrust lawsuits, and slower revenue growth compared to other tech giants. They may be falling behind in AI development, putting their future profits at risk. With a P/E ratio of 31 and declining growth prospects, Apple stock may be overvalued.

Investors should consider selling Apple stock due to the potential challenges the company faces with tariffs, lawsuits, and competition in AI. The stock is down 17.8% this year and may continue to underperform. Analysts recommend exploring other investment opportunities with higher growth potential.

The Motley Fool Stock Advisor team has identified 10 stocks with strong growth potential, but Apple is not among them. With a total average return of 979%, Stock Advisor has outperformed the S&P 500 significantly. Investors looking for better returns should consider diversifying their portfolio with the recommended stocks.



Read more at NASDAQ.: Apple Stock: Did President Trump Just Give Investors a Reason to Sell?