Trump Threatens Apple on US-Made iPhones. How Should You Play AAPL Stock Here?
Apple (AAPL) shares closed down 3% on Friday after President Donald Trump said all iPhones built outside of the United States will be subject to a 25% tariff starting next month.
According to Dan Ives, a senior Wedbush analyst, the pronouncement spells continued frustration for AAPL investors, adding that neither costs nor logistics allow for an iPhone to be made in the U.S.
Including today’s decline, Apple stock is down more than 20% versus its year-to-date high.
Why Can’t Apple Make iPhones in the U.S.?
Apple has recently pledged AI-focused investments worth up to $500 billion in the U.S.
But there’s little chance we will see the company switch to domestic manufacturing for the iPhone, at least in the near-term, Ives told clients in a research note on Friday.
According to the Wedbush analyst, a U.S.-made iPhone could cost as much as $3,500 and take up to a whole decade to scale, which makes this whole idea a “fairy tale.”
Still, Ives maintained his “Outperform” rating on Apple stock this morning with a price target of $270 that translates to a more than 35% upside from current levels.
AAPL Shares Could Benefit From the Launch of iPhone 17
Wedbush remains bullish on AAPL shares primarily because it sees a major upgrade cycle ahead.
The firm’s analysts led by Dan Ives expect the Nasdaq-listed firm to introduce a bunch of AI features in its upcoming iPhone 17, which will likely make millions of users upgrade to the latest model.
Apple shares are worth owning at current levels also because the titan has a robust balance sheet, with more than $28 billion in cash as of March 2025.
This means the company has enough cash on hand to support buybacks and dividend payments to put a floor underneath its stock price.
Apple Stock Remains a Wall Street Favorite for 2025
While not as bullish as Wedbush Securities, other Wall Street firms remain positive on Apple stock for the remainder of 2025 as well.
The consensus rating on AAPL currently sits at “Moderate Buy” with the mean target of about $231 indicating potential upside of more than 15% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.