From Yahoo Finance: 2025-06-01 18:15:00

President Trump’s push for iPhones to be assembled in the US could be costly for Apple. The company faces lawsuits and rising costs for its flagship products. Analysts warn of expensive operating costs if manufacturing shifts. Apple’s stock looks pricey amid these potential long-term risks.

Apple has relied on China’s cheap labor to build iPhones. With tariffs and pressure to reshore manufacturing, the company moved some production to India. Trump threatens a 25% tariff on iPhone imports. Analysts predict high costs if manufacturing shifts to the US, potentially raising per-unit prices by $200 or more.

Apple’s gross profits from product sales could take a hit if forced to pay high tariffs or manufacture in the US. Analysts estimate billions in added costs. The company’s supply chain could also be affected by tariffs on imported parts. However, its services segment, generating $71 billion in profit, remains unaffected.

Apple’s high-margin services face antitrust challenges, potentially impacting profits. The company’s revenue growth lags behind other tech giants like Alphabet and Microsoft. In AI, Apple falls behind competitors, risking future profitability. Analysts suggest Apple’s stock is overvalued and may underperform in the coming years.

Considering threats from tariffs and antitrust lawsuits, Apple’s stock appears risky. The company’s failure to innovate and compete in AI poses challenges. With a high P/E ratio and slow revenue growth, Apple’s profits could decline. Analysts recommend selling Apple stock from portfolios due to these risks.

Read more: Did President Trump Just Give Investors a Reason to Sell?