Apple AAPL has been on a tear, with a year-to-date return of 66.7% (versus 27.9% of the Nasdaq 100)
Apple AAPL has been on a tear, with a year-to-date return of 66.7% (versus 27.9% of the Nasdaq 100). The momentum has been fairly sturdy forward of the vacation season because the iPhone maker superior 9.4% previously month versus a 4.5% uptick within the Nasdaq 100. First rate development prospects, expectations of strong vacation season gross sales and inspiring product launches have been driving the inventory this yr despite the ebb and circulation of commerce tensions.
Including to the optimism, President Donald Trump stated on Nov 20 that he’s mulling over the exemption of the U.S. tariffs on imports of China-made Apple products from China. Apple chief Tim Prepare dinner has reportedly sought aid for China-made Apple Watches, iPhone parts and different shopper merchandise from U.S. tariffs. Earlier than this, U.S. commerce regulators had accepted 10 out of the 15 requests for tariff exemptions filed by Apple.
Notably, Apple depends on China to get most of its iPhones manufactured. Virtually 20% of Apple’s revenues come from China, the place gross sales are on the decline. In May, Morgan Stanley analyst Katy Huberty estimated {that a} 25% tariff on the iPhone might lead to a value enhance of $160 for…