Apple May Hike iPhone Price, But 'Well Positioned' To Eat Tariff Bite, Says Analyst
JPMorgan analyst Samik Chatterjee maintains an Overweight rating on Apple Inc. despite potential 25% tariffs on iPhones. He believes Apple is well-positioned to handle cost increases, estimating a possible price hike of about 5% or $50 per iPhone. Chatterjee argues that tariffs would affect all smartphone manufacturers, giving Apple a relative advantage due to its brand strength. He cautions that reshoring production is impractical and could significantly raise costs. Despite bearish technical signals, he remains optimistic about Apple's long-term prospects.
A fresh wave of tariff threats is hanging over Apple Inc AAPL, but JPMorgan's Samik Chatterjee isn't downgrading Apple stock. In fact, he's sticking to an Overweight rating, calling the company "well positioned" to weather the cost shock.
With the Donald Trump administration reportedly mulling a 25% tariff on iPhones made abroad, Chatterjee admits that "tariffs would increase likelihood of iPhone price increase." But he doesn't see this as a major threat to Apple's fundamentals.
Read Also: iTariff Threat: Trump Turns Up The Heat, But Apple’s Chart Still Holds The Line
Tariffs Won't Bite Apple Alone
He argues that tariffs "would have to be on smartphones overall, rather than iPhones alone," which means competitors would face the same pressure. Thanks to Apple's brand strength and consumer loyalty, it's "in a better position on a relative basis."
Even the potential price hike from tariffs seems digestible. Chatterjee estimates a bump of about "5% or ~$50 on an individual iPhone," adding that this is "within the realm of typical price increases the company has taken in the past."
As for reshoring iPhone production to dodge tariffs?
Too Soon To Reshore Production
That's a tall order. "Moving manufacturing/ assembly to US is challenging from a practical implementation," he says, warning it could drive a "30% increase in BOM," without even factoring in workforce and automation issues.
So for now, Apple will likely "live with tariffs and price increases near term while waiting for more stability in policy."
Chart created using Benzinga Pro
Investors are cautious. Apple stock is trading below all key moving averages, with a bearish MACD (moving average convergence/divergence) indicator of negative 1.14 and RSI (relative strength index) hovering at 38.66.
Technically, Apple stock is flashing bearishsignals—but Chatterjee's staying bullish on the long game.
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