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With the trade war raging, some traders believe the market will come back when Apple returns to normal.
Apple is not only spearheading trade disputes between the US and China, but it also holds a fairly influential position as Dow's stock and is part of the S & P 500 and Nasdaq. Apple's 2% gain on Tuesday added 25 points to the 345-point gain in the Dow Jones index.
Apple was higher on Tuesday with the overall market, but its 10% drop since President Donald Trump's first tweet on May 5, about the latest wave of tariffs is largely due to the trade . Some lawsuits, including the Supreme Court ruling rendered Monday against it, also had a negative impact on Apple's action, as part of an antitrust lawsuit against its App Store.
"While many US companies are affected by this latest trade tension, the" showdown "of the UFC US / China battle continues to be Apple's street-viewer while the actions were in A further 6% drop These rates could dramatically increase the cost of iPhones globally and have a major negative impact on the number of streets, "said Dan Ives, an analyst at Wedbush.
Apple is closely linked to China as a market for its iPhone and other products, and as an integral part of its supply chain, with its Foxconn iPhone factory.
"If Apple itself bounces, it will help a lot of businesses," said Frank Cappelleri, Instinet's executive director. "When one of the biggest titles evolves in one direction, it will elicit a lot of sympathy and sympathy – it's obvious that it's oversold."
But Cappelleri said that a rebound day did not decide a big shot, nor did it mean that there was a new life in the names of momentum. It will be rather important to monitor the behavior of his stock during the weeks or months of the trade war.
Analysts at JP Morgan, who overweight Apple, say the company is more likely to absorb the new price-related costs than to transfer them to consumers. However, the company might need a price increase of up to 14% on iPhones to offset the rates. Bank of America Merrill Lynch analysts have said that the cost of the Apple iPhone could increase by 20% if the manufacturer of his iPhone was installed in the United States.
Trump increased tariffs on Chinese imports by $ 200 billion, up from 10% last Friday at 25%. Ives said that these tariffs would increase the cost of manufacturing iPhones by 2 to 3%, but that if the remaining $ 325 billion of Chinese goods were subject to tariffs, the impact would be much greater by 10%. or more.
WATCH: The US-China trade war would hurt Apple sales around the world
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