Apple May Raise Prices Amid Tariffs: Will AAPL Stock Fall?

Bank of America analysts suggest that Apple (AAPL) whitethorn person to rise its prices amid a imaginable fiscal interaction from imaginable tariffs. Indeed, BofA estimates that a 10% tariff connected each Apple products imported into the U.S. would effect successful a 2% to 3% diminution successful net per share. Apple would person to rise its prices a spot to debar specified a dropoff successful EPS.

“Trump noted it volition beryllium a ‘simple strategy with nary 1 exempt’ from the tariffs,” BofA says successful the analysis. BofA projects that the iPhone developer sells astir 50 cardinal phones, 15 cardinal iPads, and 10 cardinal Macs successful the U.S. annually. The slope believes that if Apple maintains its existent pricing structure, the tariffs could trim EPS by $0.26, oregon 3.1%, successful calendar twelvemonth 2026. However, “if Apple raises prices by ~3% successful the U.S., the net interaction would beryllium $0.21 (-2.4%) successful C26 (we presume 5% less units sold),” the analysts add.

Source: American Banker

Tariffs To Affect Apple and Other US Tech Giants?

President Donald Trump’s tariffs are shaking up planetary commercialized arsenic the medication announces respective sweeping measures affecting EV terms hikes, semiconductor costs, and U.S. manufacturing. Various manufacture experts pass that these latest Trump tariffs could trigger galore unprecedented terms increases and proviso concatenation disruptions crossed North America. Tech giants similar Apple who trust connected overseas markets/manufacturing could spot the worst effects, forcing terms hikes for products. To offset the tariff impact, Bank of America estimates Apple would request to rise prices by astir 9%, countering an assumed 5% driblet successful portion sales.

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Trump projected issuing reciprocal tariffs earlier this month, which could further the concern for Apple and AAPL stock. While astir iPhone models tin present beryllium manufactured successful India, the reciprocal tariffs Trump could enforce connected India would apt beryllium higher than China’s 10%,” BofA said.

Despite the looming tariff issues, Bank of America analysts stay bullish connected AAPL banal potential. The steadfast maintains its Buy standing connected Apple, citing “stable currency flows, net resiliency & imaginable beneficiary of AI usage connected borderline devices.” Further, BofA has near its fiscal estimates unchanged, keeping its terms people astatine $265 per share.