Apple (AAPL) received a major reprieve recently from President Donald Trump, Schwab Network Commentator Jenny Horn suggested today.
However, Horn also noted that Dan Ives, a well-known analyst for Wedbush Securities, is still warning that there is “mass confusion” about the outlook for U.S. tech names, while Big Tech “remains in flux.”
But Horn asserted that Trump’s decision had produced “a huge sigh of relief” within the American tech sector.
A wide view of an Apple store, showing the range of products the company offers.
Apple Has “Sizeable Overseas Exposure,” Schwab Notes
Trump “exempted smartphones, computers and other tech devices and other components from (his) reciprocal tariffs,” Horn reported. She added that the duties were going “to take a pretty major toll on tech giants, including Apple.”
AAPL has significant exposure to overseas markets through the iPhone, which is its “most lucrative” product, Horn noted. Indeed, a sizeable portion of iPhones are still manufactured in China.
Ives Weighs in on the Macro Picture
Asserting that China and the U.S. are engaged in “a high stakes poker match,” Ives stated that Trump’s exemptions are a “shut-off valve for getting products to U.S. consumers..” while the decision was correct. But he added that there is still “mass uncertainty, chaos and confusion about the next steps ahead” when it comes to America’s tariff policies.
He also suggested that leaving the prior tariffs in place would have been “a catastrophic event” for Big Tech names.
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This article is originally published at Insider Monkey
