Tech Researcher Says That Apple Inc (AAPL) Is Well-Positioned, Stock Is a Buy
The Trump administration's tariffs will prove to be "pretty transitory," while Apple's (AAPL) new iPhones will have higher average sales prices than their predecessors, Ben Reitzes, a Managing Director and Head of Technology Research at Melius Research told CNBC recently.
As a result of these points, Reitzes has a Buy rating on AAPL stock.
Was Jim Cramer Right About Apple Inc. (AAPL)?
A wide view of an Apple store, showing the range of products the company offers.
How Tariffs Will Affect Apple Inc. (AAPL), According to Reitzes
Reitzes says that he's "pretty optimistic" that there will "eventually (be) a deal" between the U.S. and China regarding tariffs.
Nonetheless, Apple's profit margins are likely to undergo downward pressure over the longer term as the company shifts some of its supply chain to the U.S., he predicted.
But the researcher suggested that Apple would not be significantly damaged by tariffs over the longer term.
Analyzing Apple Inc (AAPL)'s Services Business
After a federal court ruled that Apple Inc (AAPL) had violated an injunction restricting the fees that it charges on app sales made outside of its ecosystem, the tech giant began allowing the owners of App Store apps to direct users to their websites. In the wake of Apple's move, the tech giant declined to provide guidance for its Services business for the current quarter, Reitzes noted.
But, according to the researcher, AAPL can potentially take various, positive steps, including launching new services and making new deals with Alphabet (GOOG) and/or Open AI. Such initiatives will make investors "less worried" about the tech giant's Services business, he said.
While we acknowledge the potential of AAPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
CartCon 2025: Tariffs, turbulence and the future of resilient retail
At second-annual CartCon conference in Napa Valley, CA, the tone was electric with anticipation but also laced with urgency. Billed as a summit for the company's expansive ecosystem of brands, vendors and strategists, the event served as both a product showcase and a pressure valve. Nowhere was that tension more visible than during one of the conference's hardest-hitting panels, a deep dive into the complexities of tariff policy and its ripple effects on global sourcing, consumer pricing and retail resilience. The panel consisted of three voices with rare insight into the collision of policy and commerce: Chris Smith, president of Summit Global Strategies; Tim Manning, former White House supply chain coordinator under President Joe Biden; and Nick Stachel, logistics strategy adviser at Izba Consulting. What followed was not a high-level overview, but a granular exploration of the legal, political and operational forces shaping how, and where, products are made, moved and sold. From globalization to geo-economics Smith opened the discussion by tracing the historical arc of U.S. trade policy. For decades following World War II, American trade strategy revolved around multilateralism. The U.S. saw global trade not just as an economic imperative but as a geopolitical tool, creating allies, raising standards of living and preventing conflict. But in 2016, that long-standing consensus fractured. The bipartisan abandonment of the Trans-Pacific Partnership signaled a sharp pivot. As Smith explained, the political center collapsed under the weight of the 'China Shock,' a term describing the decimation of American manufacturing towns due to offshoring. Smith described President Donald Trump's tariff policy as a psychological reset. Before Trump, U.S. tariffs averaged around 2%. Within months, they jumped to 18% in key categories. This wasn't just an economic strategy, it was anchoring. 'It's like burger sizes,' Smith said, relating back to Wendy's psychological marketing strategies. 'Before Trump, we had singles and doubles. Now the triple is on the menu, and everything else looks small by comparison.' Tariffs, he added, have become Trump's 'cat toy' — a provocative distraction wielded without consistent strategy. Even if future administrations soften tariff policy, Smith warned, the structure of global trade has already shifted. Retailers and manufacturers alike are building permanent workarounds. Inflation, particularly in consumer goods, is the slow-burning consequence. While Smith provided the philosophical backdrop, Manning broke down the legal tools underpinning today's tariff landscape. The real disruption, Manning emphasized, has come through the use, and misuse, of the International Emergency Economic Powers Act (IEEPA). Originally designed as a tool for national security sanctions, IEEPA has been repurposed by the Trump administration to enact sweeping tariffs with little congressional oversight. Manning described the legal and logistical chaos for businesses from these tactics. In just six weeks, the Trump administration issued 17 executive orders using IEEPA authority, stripping trade policy of its usual predictability and process. For businesses, this has been catastrophic. Sourcing strategies built over years have unraveled in days. 'We're in a volatile environment,' Manning said. The cost of doing business now includes factoring in the potential for abrupt, unexplained swings in tariff exposure. Long-term investments have become high-risk bets, and in many cases, they're simply not being made. On-the-ground retail strategy Bringing the policy talk down to the warehouse floor, Stachel outlined how brands are actually coping with this new reality. In the short term, some are fast-tracking inventory from China before new tariffs hit, relying on expedited ocean freight and cross-docking at West Coast ports to minimize delays and avoid customs bottlenecks. Others are making subtler moves — like holding prices steady on high-visibility products – say, a gaming console – while raising prices on accessories and add-ons to recoup margin. Stachel noted that many brands have moved beyond the now-familiar 'China Plus One' strategy, opting instead for a 'China Plus Three' approach. They are spreading risk across Vietnam, India and Mexico, often working with global manufacturing giants like Foxconn that can seamlessly shift production across borders without retooling or retraining labor. In essence, brands are outsourcing flexibility itself. For those planning beyond the current election cycle, geographic diversification is no longer enough. Brands are factoring in port access, transportation infrastructure, exposure to natural disasters and local workforce stability. Some are eyeing countries like Morocco, Colombia and Thailand as next-generation sourcing hubs. Nearshoring to Mexico has particular appeal, not just because of its proximity to U.S. consumers, but because of the downstream economic benefits. 'We're still benefiting from a cross border perspective, from a transportation trucking perspective, from a warehousing perspective, as these border towns are growing, the economies in the small border towns are growing as well,' said Stachel. These sourcing shifts are backed by hard data prepared by Stachel. According to a comparative analysis of emerging manufacturing markets, countries like Vietnam, Indonesia and the Philippines are increasingly viable alternatives to China, not only in terms of labor costs but also port infrastructure and U.S.-bound vessel frequency. Vietnam, for instance, operates nearly 50 seaports, including Ho Chi Minh City and Hai Phong, both of which have multiple sailings to the U.S. each week. Indonesia boasts over 100 ports, including Tanjung Priok in Jakarta. Even Cambodia, though limited in scale, has weekly direct sailings from both Phnom Penh and Sihanoukville. These figures underscore the importance of transportation fluidity and market access in sourcing decisions. As Stachel emphasized, brands are no longer optimizing solely for cost, they're optimizing for resilience. Both Smith and Manning cautioned that the real reckoning may be ahead. While tariff impacts are already being priced in at the retail level, the broader inflationary wave has yet to crest. Smith called inflation the 'other shoe,' likely to drop later this summer as new tariffs pass through the supply chain and collide with already fragile consumer sentiment. Uncertainty, they agreed, has become the greatest tax of all. With businesses unable to predict future policy, many are frozen. Manning advised attendees to monitor key macroeconomic signals, including treasury bond activity, consumer confidence indices and safety stock drawdowns. Executive orders posted on he added, are the best early indicators of a sudden policy shift. What retailers are saying – and doing The audience at CartCon also offered candid perspectives. Through real-time polling, attendees offered a rare window into how brands are navigating the chaos. Asked what recent policy had most affected their supply chains, 68% cited China tariffs, with an additional 24% naming de minimis enforcement, or stricter checks on duty-free, low-value imports. In a sign of just how volatile the environment has become, 64% said they revisit their sourcing strategies quarterly. And nearly half, 47%, have responded by raising prices. Twenty-nine percent have changed sourcing countries, while 18% are simply eating the cost. Looking ahead, most brands aren't betting on reshoring. Asked if they expect to source more from the U.S. in five years, 70% said their sourcing would remain about the same, and 30% expected an increase. No one expected to source less. It was a striking rebuke of the idea that domestic manufacturing is due for a renaissance, at least for the retail segment. Tariffs and uncertainty are already impacting consumer demand. Thirty percent of respondents said they expect a consumer slowdown by Q4 2025, while 45% said they're already feeling one. And yet, the vast majority, 82%, said they are not cutting marketing budgets in response. In today's environment, visibility is survival. In a forward-looking poll, 81% of respondents said online shopping will be the dominant channel in the next decade, compared to just 6% for stores. Even more striking, 75% believe direct-to-consumer models can still succeed, suggesting that agility, not abandonment, is the key to survival. The post CartCon 2025: Tariffs, turbulence and the future of resilient retail appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Boston Globe
11 minutes ago
- Boston Globe
‘It's a net positive for us.' For some US manufacturers, Trump tariffs pay off
AccuRounds is exactly the kind of high-end manufacturing company that's supposed to benefit from the Trump tariffs —and right now the plan seems to be working. After a sluggish 2024, AccuRounds workers are putting in overtime as they transform steel rods into hundreds of highly specialized industrial gadgets, and the company is looking to hire. Revenues were up by 20 percent in the first quarter of 2025 and Tamasi expects the same for the current quarter. Revenues last year came to about $20 million, he said. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up AccuRounds makes precisely machined pieces of metal that mostly go inside bigger machines, ranging from commercial aircraft to industrial robots to drug manufacturing systems. For instance, one component goes into a pump that excretes the glue used to assemble iPhones. Another is a driveshaft that's found in most of the machines used worldwide to make influenza vaccines. Advertisement AccuRounds also makes surgical tools such as trephenes, the razor-sharp cookie cutters used to extract diseased corneas from human eyes during transplant procedures. AccuRounds even makes components for high-end flutes played by professional musicians. Advertisement AccuRounds is nothing like the grimy machine shops of old. It's clean and well-lit, with a multitude of computer-guided milling machines, each costing hundreds of thousands of dollars. The Plexiglass windows on each machine are splashed by a constant spray of cutting oil, which cools and lubricates the cutting tools and washes away metal debris. Twelve-foot steel rods are fed into the mill, where they're automatically shaped, drilled and cut into the proper shape, then dropped into a finished-parts bin. Lately the company's installed robotic arms at some of the milling machines. Made by Universal Robots, a Danish company owned by North Reading-based That doesn't mean fewer jobs, Tamasi said, just different ones. 'It's a commitment that we've made to our team here, that technology, The company's recent revenue surge began right after the re-election of Donald Trump, who'd campaigned on a promise to revive US manufacturing by levying high tariffs on imports. 'It was the end of November, early December,' said Tamasi. 'That's when we started to see things turn.' One customer who had been purchasing from machine shops in Singapore and China told Tamasi that the impending tariffs had cause a change of heart. 'They mentioned they spent a couple of years farming work out,' Tamasi said. 'Now they're looking at bringing that work back.' Advertisement Mark Curtin inspected a finished product at AccuRounds. Matthew J. Lee/Globe Staff It's a reminder that tariffs aren't all bad. And AccuRounds isn't the only local manufacturer to benefit. Canton-based Company president Brian Buyea said that even before Trump took office, he was hearing from customers looking to 'reshore' their supply chain with US-made circuit boards. 'Now you start to add the tariffs on top of that, it's started to give us a little more of a positive boost,' Buyea said. Because the Trump administration has so frequently raised and lowered its proposed tariff rates, Buyea couldn't predict their effect on Remtec's revenues. 'It could be anything from a 10 percent pickup for us, to, we could double our business,' he said. Even skeptics concede that import taxes can benefit domestic manufacturers by driving up the cost of products made by foreign competitors. 'These types of polices inevitably have some winners, at least in the short term,' said Scott Lincicome, economist at the To Lincicome. tariffs produce far more losers than winners, as businesses and consumers throughout the economy end up paying more for products. Either they keep buying imports, and pay the tariff, or they switch to more expensive US sources. Many domestic companies use higher tariffs as an opportunity to raise their own prices. And as domestic orders surge, some companies must invest in new plant and equipment, and their new customers will pay for it. 'Over time, you're getting slower growth and a less efficient, less productive economy,' said Lincicome. Advertisement AccuRounds derives only about 5 percent of its revenue from exports, so the company won't suffer much if foreign nations aim retaliatory tariffs at US goods. But the Trump tariffs make it more expensive for manufacturers to purchase the supplies and equipment they need. Steel tariffs are a problem, Tamasi admitted. He'd happily buy US-made steel but 'the quality and the consistency is not there,' he said. 'We've tried everyone.' So he'll keep importing the steel despite the administration's 50 percent tariff. However, AccuRounds' sales contracts stipulate that the company can pass on any increases in steel costs to the end user, shielding AccuRounds from the tariff burden. There's no way around it, said Tamasi. 'If we had to absorb all price increases,' he said, 'we wouldn't be able to compete.' An even bigger hit could come from purchasing new milling machines, priced at half a million dollars or more even before the tariffs. The only ones worth buying, Tamasi said, are made in Switzerland, Germany and Japan. No US company makes the machines he needs, Tamasi said there's no way he can pass this tariff bill directly to customers, but in the long run it could well push his prices higher. Still, if Tamasi's customers are willing to pick up the tab, AccuRounds is a likely victor of the tariff wars. AccuRounds makes specialized metal parts. Matthew J. Lee/Globe Staff Hiawatha Bray can be reached at
Yahoo
12 minutes ago
- Yahoo
Russia fines Apple for violating 'LGBT propaganda' law, TASS reports
MOSCOW (Reuters) -A Russian court on Tuesday fined U.S. tech giant Apple six million roubles ($76,510) for violating Russian rules on what Moscow calls "LGBT propaganda," the state TASS news agency reported. Russia in 2023 widened existing restrictions on the promotion of "non-traditional sexual relations" amid a broader crackdown on LGBT rights, part of President Vladimir Putin's push to uphold what he calls traditional values. Apple was fined three million roubles in two civil cases on Tuesday, TASS reported. Apple was last month fined a total of 7.5 million roubles for the same offence. Apple did not immediately respond to an emailed request for comment. ($1 = 78.4205 roubles)
