'Nobody Is Getting Off The Hook,' But iPhones Are: Reiterating Buy On Apple

2025-04-14 09:25:08 ET

Summary

• President Trump's tariff exemption for smartphones, computers, etc. may not stick for others, but in our view, will stick for Apple Inc. because Trump can't afford iPhones to be collateral damage in the U.S.-China trade war.
• U.S. tariffs on China, at 145%, disproportionately harm U.S. companies more than China; the bulk of value from a $1,000 iPhone to U.S. semi-companies.
• Keeping tariffs that include Apple would also give Chinese smartphone vendors a runway to eat up more of the global smartphone market, which Apple can't afford.
• AAPL stock remains a no-brainer long-term pick, in our opinion, and any more threats of tariffs post-exemption should be much-welcomed windows to add the stock on discount.

This month kicked off with a rollercoaster of tariffs; it’s officially a game of ping pong, and we’re here to say we don’t think the U.S. tariffs on China when it comes to smartphones will stick because of Apple Inc. (AAPL) ; either Apple getting prominent exception or the entire market getting one....

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