Apple could move production if tariffs skyrocket

|About: Apple Inc. (AAPL)|By:, SA News Editor

Apple (NASDAQ:AAPL) could move its iPhone production away from China if tariffs hit 25%, according to Bloomberg sources.

Apple's suppliers reportedly intend to stay with the existing model even if the U.S. levies a 10% tariff on some smartphones. But the situation could change with a hike in tariffs.

Right now, the tariffs don't apply to smartphones. But President Trump indicated last month that the devices could move to include smartphones and laptops.

Apple's supply chain includes hundreds of companies with a number dependent on the revenue to the point that Apple's relocation demands would hold sway.

RBC analyst Amit Daryanani recently noted that a 10% tariff would reduce Apple's EPS by a dollar to 2019E $13.32.

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