Apple’s ‘Tariff Actions’ Are Bridging Gap Until iPhone 17 Launch, Says Loop Capital Amid Trump Trade Threats

Apple's (AAPL) strategy of pulling phone shipments into the March and June quarters – part of its “tariff actions” – is helping bridge the gap until the iPhone 17 launch, according to Loop Capital analyst Ananda Baruah.

The stock edged 0.45% higher in morning trade on Wednesday.

He noted that Apple has also raised its iPhone 17 shipment forecast for the December quarter, as per TheFly. Baruah also highlighted that average selling prices are rising, with the company anticipated to increase prices on the iPhone 17 Pro and Pro Max by $100 to $200.

Loop Capital maintains a ‘Hold’ rating on Apple with a $215 price target, a potential upside of nearly 7%. 

Apple initially moved its iPhone assembly from China to India after Trump’s ‘Liberation Day’ reciprocal tariffs were announced. However, last week, the President proposed a 25% tariff on iPhones not made in the U.S. 

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” he wrote in a Truth Social post. 

According to Morgan Stanley analyst Eric Woodring’s note to clients, a 25% tariff on iPhone imports is not enough incentive for Apple to reshore U.S.-bound iPhone production. 

The analyst estimated that it would take over two years and several billion dollars to build multiple greenfield iPhone assembly plants in the U.S., making iPhone production 35% more expensive than those produced in China or India. 

According to reports, Apple plans to raise the prices of the upcoming iPhone 17 in the fall, regardless of tariffs. It is reportedly “determined” to avoid any perception that the higher prices are tied to U.S. tariffs on Chinese-made goods.

Apple’s stock has fallen nearly 20% this year but has gained around 5% in the past 12 months. 

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