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Apple's stock slips after Trump claims iPhones could face a 10% rate



Apple's shares fell Tuesday, a day after President Donald Trump suggested the US impose a 10% tariff on iPhones and laptops made in China.

Apple shares, which are already down 20% this month, lost Tuesday 1.8% of their market value before marketing.

Trump also said that it was "highly unlikely" to delay the increase in overall tariffs early next year, from 10% to 25%. Trump must meet Chinese President Xi Jinping in three days at the G20 summit.

Apple products are exempt from customs duties, but that could change if Trump adds $ 267 billion in additional tariffs on Chinese products.

Bernstein analyst Tony Sacconaghi explained Apple's revenue, noting on CNBC's "Box Squawk" that "25% of Apple's revenue, or $ 50 billion, would be subject to a tariff. 10 or 25% ".

If Trump continues to increase tariffs on Chinese products, said Sacconaghi, the biggest question is "how will China react?"

"Could they try to disrupt the supply chain of Apple in one way or another? Could not they authorize the sale of new phones in the country? China could do a lot of things and this could even be even more devastating, "said Sacconaghi.

In addition, RBC Capital Markets has reduced its Apple price target to $ 235 per share, stating that there are "sustainable data points around the low demand for iPhone from the supply chain and from there. other suppliers ".

"Although the AAPL shares have significantly corrected (down 21% since the company's release against S & P500, by 2%), we believe investors will wait until point / noise levels stabilize. before becoming more positive about the name, "said Amit Daryanani, of RBC. note to investors.

Watch: Steve Jobs explains the iPhone to CNBC in 2007


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