Schwab Network Importance of Tech Tariff Exemptions to AAPL, A.I. & Services Key Ahead
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Apr 14, 2025 In this insightful discussion, guest Angelo Zino, a Senior Equity Analyst at CFRA Research, emphasizes the positive implications of the Trump administration's tech tariff exemptions for Apple. He outlines how these temporary reliefs provide Apple a chance to adapt its manufacturing and suggests a shift towards Apple Intelligence and services to compete effectively. Zino also discusses Apple's growth prospects in India, the impact of changing tariffs on pricing strategies, and the importance of maintaining consumer demand amidst evolving market conditions.
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Tariff Impact
- The Trump administration's decision to lower tech tariffs from China is positive, but may cause a pull in of demand.
- Companies need a favorable macro landscape for this to play out positively long-term.
Apple's Win
- The tariff exemption is a significant win for Apple, potentially saving them over $50 billion in costs.
- This allows Apple to moderately increase prices without impacting demand or significantly affecting profit margins.
Pull-Forward Demand
- Angelo Zino anticipates some pull-forward demand, particularly from retailers stocking up on Apple products.
- This effect may be stronger for recently launched products like iPads and Macs, less so for iPhones due to the upcoming iPhone 17 launch.