Apple Stock: Did President Trump Just Give Investors a Reason to Sell?
Apple (NASDAQ: AAPL) has optimized its costs through a global manufacturing footprint. This relationship -- specifically with China -- may be coming to an end if President Donald Trump gets his way. The maker of the iPhone used the large and cheap labor market of China and other Asian nations to cheaply build and assemble its hardware before selling to consumers around the world, making a tidy profit in the process.Now, with large tariffs implemented on imports from China, Apple has begun to move some of its manufacturing to India in order to hedge its bets. However, this caught the ire of Trump, who said that Apple will face a 25% tariff on iPhone imports and that the products should be made in the United States in order to reshore manufacturing.According to analysts, building iPhones in the United States will greatly raise Apple's operating costs. Does that give investors a reason to sell the stock?Continue reading
Apple (NASDAQ: AAPL) has optimized its costs through a global manufacturing footprint. This relationship -- specifically with China -- may be coming to an end if President Donald Trump gets his way. The maker of the iPhone used the large and cheap labor market of China and other Asian nations to cheaply build and assemble its hardware before selling to consumers around the world, making a tidy profit in the process.
Now, with large tariffs implemented on imports from China, Apple has begun to move some of its manufacturing to India in order to hedge its bets. However, this caught the ire of Trump, who said that Apple will face a 25% tariff on iPhone imports and that the products should be made in the United States in order to reshore manufacturing.
According to analysts, building iPhones in the United States will greatly raise Apple's operating costs. Does that give investors a reason to sell the stock?
