Shares in the iPhone maker, which reported a surprise improvement in its fortunes in China earlier this week, sank more than 2% in morning trading, adding to similar losses the day before after Trump tore a truce. trade with China that had lasted just over a month.
Apple Inc. could see a gain in its annual profits from the tariff recently proposed by US President Donald Trump‘s 10% on Chinese imports from September 1, Bank of America analysts Merrill Lynch said Friday.
“Our envelope math back suggests that the impact (of the new fees) will be approximately $ 0.50 – $ 0.75 (annualized per share) hit on earnings of approximately $ 0.30 – $ 0.50 from the iPhone, “the brokerage said.
The BofA note also envisioned the possibility of Apple raising iPhone prices by about 10%, reducing demand for phones by 20% or about 10 million units.