Apple thinks the tariff fight with China will hurt its bottom line, but some experts say the tech giant is poised for growth.
“Apple is a Goliath in a market with absolutely no Davids running around,” Disruptive Tech Research founder Lou Basenese told FOX Business’ Maria Bartiromo on Wednesday. “Their dominance is secured.”
Apple shares are up more than 200 percent over the last five years and more than 300 percent since Tim Cook succeeded founder Steve Jobs. The company recently became the first to hit a trillion-dollar market cap.
“They take the lion’s share of the profits and they’ve proven time and time again Tim Cook is not a slugger that looks to hit dingers — he’s Mr. Reliable,” Basenese added. “He hits singles and doubles and the proof is in the scoreboard.”
Basenese's comments come after President Trump in a tweet on Sunday responded to Apple’s concerns over the impact of the proposed tariffs on $200 billion worth of Chinese goods. Trump suggested that they should make their products domestically. But experts have warned that iPhone prices would surge as much as 20 percent. However, CFRA Research senior equity analyst Angelo Zino said while he expects about 5 to 6 percent of their revenue to be exposed, it would only impact certain products, including the watch and AirPods.
“They’d be able to pass on a good chunk of the higher prices to consumers, maybe about 10 percent of that,” Zino told Bartiromo. “But at the end of the day we continue to believe that iPhones will not be touched when it comes to tariffs.”
Because of this Zino has a Buy rating on Apple stock and a target price of $255.