The leading analyst Craig Moffett suggests that all plans to bring iPhone assembly to India are unrealistic.
Moffett, which was classified several times by institutional investor as a top analyst, sent a memo to customers on Friday after the Financial Times was registered Apple The aim was to move the production from China to India until the end of next year.
He wonders how a move could reduce the cost of tariffs because the iPhone components in China would still be made.
“You have an enormous menu of problems generated by tariffs, and the move to India does not solve all problems. Now it helps to a certain degree,” said the Moffettnathanson partner and senior managing director towards CNBCs “Quick money“On Friday.” I would wonder how that will work. “
Moffett claims that it is not so easy to diversify for India. Apple’s supply chain is still anchored in China and would probably be exposed to resistance.
“The conclusion is a global trade war is a struggle with two fronts that affects the costs and sales. The merger to India could (and we emphasize that I might be able to).
Moffett lowered his Apple price target on Monday to $ 141 $ 184 per share. It implies a decrease of 33% compared to closing on Friday. According to the fact set, the price is also low.
“I don’t consider myself the largest apple bear,” he said. “I think very high from Apple. My concern about Apple was more than the company.”
Moffett has had a “sales” rating for Apple since January 7th. Since then, the company’s shares have dropped by about 14%.
“None of this is because Apple is a bad company. You still have a great balance (and) a great consumer franchise,” he said. “It is only the reality that there are no good answers when they are a product company, and their products are significantly delicate, and they go into a market that probably has at least a certain delay in consumer demand due to the macroeconomics.”
Moffett notes that Apple does not receive any help from his airlines to pillow the tariff.
“You also have the destruction of the demand, which is generated by potentially higher prices. Remember you had it AT & TPresent Verizon And T. Mobile The whole week comes and let’s say that we will not (on) overwrite the additional costs for tariffs, “he added.” The consumer has to pay for it. So you will have a destruction of demand that will appear in even longer stopping times and slower upgrade rates – all estimates next year. “
According to Moffett, the counter -reaction against Apple in China will also affect the iPhone sale compared to US tariffs.
“It’s a very real problem,” said Moffett. “Bands really go into the HuaWody and the Vivos and the local competitors in China and not for Apple.”
The Apple share has a winning week – by more than 6%. Before the quarterly winning report of the iPhone Maker, it can be traced back next Thursday after completing the market.
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