The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried?
From Yahoo Finance: 2025-06-17 16:27:00
President Donald Trump’s family business is launching Trump Mobile with a $499 phone and $47.45/month service. Apple faces scrutiny over moving production to India. Trump’s displeasure with CEO Tim Cook’s decisions is clear. Apple is investing $500 billion in U.S. operations to mitigate tariffs and strengthen its brand. Apple’s Services division continues to be a key revenue driver with a 75.7% gross margin. Apple’s market cap is $2.96 trillion with strong historical growth. Apple reported Q2 2025 revenue of $95.4 billion, beating estimates. Earnings per share rose to $1.65, exceeding forecasts. The company holds $28.2 billion in cash and announced a new $100 billion stock repurchase authorization. Apple faces challenges in the AI space with delays in Siri enhancements and legal obstacles. The company’s AI suite, “Apple Intelligence,” has faced criticism for limited compatibility and lack of innovation. Apple’s stock trajectory is also impacted by subdued AI performance compared to competitors. Apple’s move to open its AI model to third-party developers may drive broader integration but faces timing challenges. Analysts rate Apple stock as a “Moderate Buy” with a mean target price of $230.75, indicating 18% upside potential.
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