Apple (AAPL) Stock Faces “More Downside Than Upside” as Jefferies Flags Tariff Concerns

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks in Focus on Wall StreetOn October 13, Jefferies reiterated the stock as “Underperform” and lowered its price target on the stock to $203.07 per share from $205.16. Analyst Edison Lee noted “more downside than upside” ahead for Apple.

“As flagged before, tariffs could come back to haunt AAPL.”

The firm highlighted how Trump’s proposed 100% tariff on Chinese goods, which starts Nov. 1, would hit Apple. This is considering the company relies heavily on China for assembly.

“Not only could the current tariff-exempt status of smartphones change, the uncertainties around the U.S.-India and U.S.-China tariff framework are underestimated risks. As Trump has just slapped an additional 100% (now 30%) tariff on Chinese imports, whether smartphone import from China would continue to be exempted remains uncertain.”

The firm anticipates a 5% EPS hit in FY2026 if the company pays a 130% tariff on an estimated 9 million units. Since Indian production is unable to fully cover U.S. demand, Apple will be vulnerable if tariffs are imposed.

Lee pointed out that China is unlikely to meet 100% of its U.S. demand for iPhone 17s with production from India. The company may also face additional pressure from the administration to make more iPhones in the U.S. This especially holds in the event of an escalating U.S.-China conflict.

Margins for the company’s latest lineup may be further thinned by an unfavorable product mix and a higher bill of materials cost.

“iPhone 17’s sales momentum has shown further slowdown.”

Apple is a technology company known for its consumer electronics, software, and services.

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