Apple (AAPL) might be one of the companies that avoid President Donald Trump’s tariffs, at least in part, thanks to its relationship with Hon Hai Precision Industry’s (HNHPF) Foxconn. Foxconn is one of the major suppliers for the iPhone maker and Chairman Young Liu isn’t overly worried about President Trump taxing its goods.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
The Foxconn Chairman said the company will make arrangements with its partners if tariffs become an issue. Liu is open to manufacturing outside of Taiwan, saying “If we don’t manufacture here, we can do it there, so the impact is not too great.”
This makes sense as Foxconn already has some manufacturing capabilities in the U.S. Increasing U.S. production could help it meet the needs of its American clients while limiting the effects of tariffs on imports into the country.
What This Means for Apple
If Foxconn increases its capabilities in the U.S., this could help shelter Apple from some of President Trump’s tariffs. That’s welcome news for the tech giant as chips have been a focus of the President’s tariff plans. This could also benefit Apple customers, helping them avoid increased prices on products sold by the company.
The idea of Apple avoiding tariffs could also be attractive to investors. The Mac maker is already among the top stocks on the market, but the extra benefit of avoiding tariffs may pull in news shareholders hoping to better weather the U.S. trade war with AAPL stock.
Is AAPL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Apple is Moderate Buy based on 18 Buy, 11 Hold, and four sell ratings over the last three months. With that comes an average price target of $250.94, a high of $325, and a low of $188. This represents a potential 6.77% upside for AAPL stock.
