Latest news with #China-dependent
Yahoo
22-05-2025
- Business
- Yahoo
Dan Ives: China Tariff Truce Revitalizes Bull Case for Apple as Half of User Base Approaches Upgrade Cycle
The company has a huge manufacturing base in the giant Asian nation. It also has options to shift it elsewhere. 10 stocks we like better than Apple › Among the many tech companies that rely on Chinese manufacturing, none is better placed to benefit from the recent thaw in that country's tariff war with America than Apple (NASDAQ: AAPL). That, at least, is the view of closely followed tech industry analyst Dan Ives of Wedbush Securities. In mid-May, the White House announced that it and China agreed to drastically reduce certain tariffs and pause others. Ives said in a subsequent interview with Bloomberg that this should lead to a "dream scenario" for the tech giant. Here's a look at why the analyst thinks Apple has such a monster opportunity, and whether the company can truly take advantage of it. It's telling that Apple emphasizes that the iPhone is designed in California. This might be something of a head fake to obscure the fact that the smartphones aren't made there. Rather, in the most likely case, your latest iPhone was made in China; estimates place the ratio at eight or nine out of every 10 of these products being produced in the massive Asian country. To put this in some perspective, Apple is hardly the only China-dependent large U.S. tech enterprise. Other notable techies getting many of their goods made there are sector mainstays Intel and Texas Instruments, to name two of many. Also China is a huge market for sales of their finished products. Apple has a longer made-in-China history than many might realize. In those long-ago days before the iPhone came into being, Apple had been making its products in China in 2001. The lure of notably cheaper manufacturing was impossible to resist for the company, which was in the early stages of its vaunted Steve Jobs-led comeback around that time. So any sanctions on Chinese manufacturing threaten to put a real hurt on its operations. After all, despite its efforts to crank services revenue higher, the great bulk of the company's top line still comes from device sales -- 72% of the total in the most recently reported quarter. That's a high level of dependency, and I think investors worry about this. Even after Apple stock rallied when the pause was announced, its shares are still down more than 19% year to date in price -- comparing unfavorably with the 1% rise of the bellwether S&P 500 index. They won't stay down at that level, Ives firmly believes. He's maintaining his outperform (i.e., buy) recommendation on Apple and his price target of $270 per share. That anticipates a rather chunky upside of more than 30%. To him, the current stage of the tariff dispute provides the company with tantalizing options. One is to accelerate device-making in India, a more recent addition to its manufacturing base that came onstream in 2017. This is a more expensive option by as much as 10%, according to recent reporting from Reuters, because of India's relatively high import duties on phone components. However it gives the company some leverage in its dealings with Beijing and can be a safety valve if the tariff war starts to heat up again. If it doesn't, so much the better. Ives said that the company can easily maintain its "China-driven" manufacturing regime. Either way, one of the stated goals of the Trump administration is to bring manufacturing back to the United States. In the analyst's view, that just isn't going to happen. The notably higher costs of making goods in this country would mean a price tag of $3,500 per iPhone. So Apple's production strategy is not likely to stray from low-labor-cost countries. What's encouraging about this, according to Ives, is that it's stepping into a massive upgrade cycle. Over the next two to three years, he told Bloomberg, essentially half of Apple's installed base will buy the latest models. That should be quite the boon, as those models will remain inexpensive to make. The market's reaction to the big tariff news was muted, perhaps suggesting that many investors expected a cooling of the dispute. These folks also might not be buying Ives's assertion that the upgrade cycle will involve 50% of Apple users. Many skip several generations of iPhones before moving up to the latest models, myself included. Still, I'd share the analyst's bullish view on the stock anyway, and I'm planning on holding on to my shares. For me, the great opportunity just now is not with phones, or even those slick recent iPad models or ultra-high-fidelity Beats headphones. Rather, it's the services offerings. In the six months ending on March 29, Apple's revenue for such offerings climbed by 13% over the same period the previous year. Meanwhile, products revenue rose only 2%. I think this dynamic will continue, as the company can go in various directions with services to either widen existing revenue streams, such as from financing activities, or create new ones. All that considered, I'd be in the Apple bullpen with Ives. I'm not totally sold on all of his analysis of the company's latest opportunities, but regardless I'd fully agree the stock is a buy. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Intel, and Texas Instruments. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy. Dan Ives: China Tariff Truce Revitalizes Bull Case for Apple as Half of User Base Approaches Upgrade Cycle was originally published by The Motley Fool
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First Post
05-05-2025
- Politics
- First Post
Tension after Pahalgam: India's air defence leapfrogs Pakistan's China-fed teeth
Amid rising tensions, India is building a next-generation air defence architecture that surpasses Pakistan's China-dependent systems in range, resilience and indigenous innovation read more Following the Pahalgam terror attack on April 22 and relentless military drills and small arms exchanges for 10 consecutive nights along the Line of Control (LoC), tensions have heightened significantly between India and Pakistan. This has fuelled speculation over whether a full-scale war is on the horizon between the two nuclear-armed neighbours. There is still no clarity on what form such a conflict might take — whether it would involve ground troops, artillery, mechanised infantry, naval forces, airpower or a combination of all. Regardless of the scope, air defence remains a vital component of any military strategy, essential for protecting both human and material assets. STORY CONTINUES BELOW THIS AD Amid these evolving geopolitical challenges, India's air defence strategy is undergoing a significant transformation. With adversaries like China and Pakistan advancing their offensive capabilities, India is reassessing how to safeguard its airspace best. While there was once considerable interest in Israel's Iron Dome — widely regarded as a highly effective air defence system — its recent vulnerabilities in Israel's simultaneous conflicts with the Houthis, Hamas, and Hezbollah have raised concerns about its applicability to India's threat environment. Previously considered nearly impenetrable, the Iron Dome came under renewed scrutiny after the October 7, 2023, Hamas attack, during which approximately 5,000 rockets were launched in just 20 minutes, overwhelming the system and exposing its limitations, according to Newsweek. Looking at the Iron Dome: Interest and rejection India's interest in the Iron Dome dates back to 2010, according to Pieter Wezeman, a senior researcher at the Stockholm International Peace Research Institute (SIPRI), who shared with Newsweek that India was among several countries evaluating the system. However, the interest never materialised into a purchase. Other countries like Romania, Cyprus and Azerbaijan also considered buying the Iron Dome, but actual deliveries were either unconfirmed or never occurred. One key reason for India's hesitation was its already ongoing development of indigenous systems like the Prithvi Air Defence (PAD), Advanced Air Defence (AAD) and Akash missile systems. As The Eurasian Times noted, India was inclined towards self-reliant solutions that could address the country's distinct threat landscape—a sentiment echoed by Indian defence officials who emphasised the mismatch between Israel's needs and India's. Air Marshal (Retd) Anil Chopra, head of the Centre for Air Power Studies, told The Print that while he had once supported acquiring an Iron Dome-like system, it no longer made sense with India inducting the S-400 missile system and evaluating the US-made NASAMS-II for the protection of critical infrastructure like the national capital. STORY CONTINUES BELOW THIS AD Building the indigenous shield India's multi-layered air defence doctrine now rests on a blend of indigenous and imported technologies, aiming to address a wide spectrum of aerial threats—from low-flying drones to ballistic missiles. The PAD and AAD systems are among the foundational elements which provide interception at high and low altitudes, respectively. The Akash system, a medium-range surface-to-air missile platform, is another key component, capable of engaging multiple targets at various altitudes. In parallel, India has made strategic imports like the S-400 Triumf system from Russia. Signed in October 2018, the deal faced resistance from the United States, but India proceeded regardless. As reported by The Eurasian Times, the S-400 significantly boosts India's interception capabilities with a tracking range of 600 kilometres and the ability to engage 80 targets simultaneously, including ballistic and cruise missiles, drones and fighter jets up to 400 kilometres away. Additionally, India has also expressed interest in acquiring the US-made NASAMS-II (National Advanced Surface-to-Air Missile System), although no formal procurement has occurred yet. Enter Project Kusha The most ambitious component of India's air defence future is Project Kusha—a DRDO-led initiative to develop a long-range air defence system with capabilities mirroring and even surpassing the Iron Dome. This system will be capable of intercepting stealth aircraft, drones, cruise missiles and precision-guided munitions at ranges up to 350 kilometres. Project Kusha aims to incorporate multiple layers of interception through different missile types designed to hit targets at 150, 250 and 350 kilometres respectively. It will also include long-range surveillance and fire control radars and offer high kill probabilities: not less than 80 per cent for single launches and 90% for salvo launches. STORY CONTINUES BELOW THIS AD The system is designed to target high-speed threats with low radar cross-sections and can engage fighter-sized targets at 250 kilometres and larger aircraft like AWACS at 350 kilometres. With funding of Rs 21,700 crore already approved, this project marks a significant step in India's pursuit of an 'Aatmanirbhar Bharat' or self-reliant defence industry. According to DRDO sources quoted in Firstpost, the Project Kusha system will fill a critical capability gap by providing strategic and tactical cover to vulnerable zones, especially important given the missile deployments observed across the Indo-Tibetan border by China. The Pakistan factor No analysis of India's air defence environment is complete without understanding the systems fielded by Pakistan. According to the Indian Defence Research Wing, although Pakistan has made strides in modernising its air defences, its systems still lag behind India's in terms of technological sophistication, integration and reach. The backbone of Pakistan's high-altitude defence is the Chinese-supplied HQ-9P and HQ-9BE systems with ranges of 100 to 200 kilometres and interception capabilities up to Mach 14. As detailed in the Pakistan Army's SAM Systems brief, these systems primarily protect strategic zones like Karachi and Rawalpindi and are believed to use HT-233 phased-array radars. Pakistan's medium-range capabilities are built around the LY-80 and LY-80E systems, which offer coverage between 40 and 70 kilometres and target speeds of up to Mach 2.5. These systems, although effective against subsonic threats, are reportedly inadequate against India's supersonic BrahMos missile, which travels at Mach 3+. STORY CONTINUES BELOW THIS AD For short-range threats, Pakistan relies on a mix of Chinese and older Western systems like the FM-90 (15 km), French Crotale and MANPADS such as the Anza series and RBS-70 NG. However, these systems have limited radar coverage, outdated command guidance and lack the multi-target engagement capability of systems like India's Barak-8. While Pakistan's air defence architecture is improving, especially with the induction of HQ-9P and LY-80EV variants, it remains heavily reliant on Chinese technology and lacks the indigenous depth that India is now investing in through DRDO and Project Kusha. Strategic lessons from Iron Dome for India Despite its limitations, Israel's Iron Dome has proven effective in intercepting thousands of incoming threats and it still maintains a claimed 90 per cent effectiveness rate under normal operational conditions, as reported by The Eurasian Times. The system comprises three to four launchers and a radar, protecting areas of up to 60 square miles. However, its high cost—with each Tamir interceptor costing approximately $20,000 to destroy much cheaper rockets—has been a point of criticism. India has taken valuable cues from these operational lessons. Unlike Israel, which operates in a smaller geographical area with largely asymmetrical threats, India must deal with a wide array of conventional and strategic challenges across a massive territory. This has led to a preference for scalable, multi-tiered solutions with a focus on both cost-effectiveness and technological sophistication. In this context, DRDO's push to develop multiple types of interceptors for varying threat levels coupled with the integration of indigenous radars and sensors reflects a lesson well learned from Israel's Iron Dome experience. STORY CONTINUES BELOW THIS AD Building a self-reliant, multi-layered shield India is crafting a uniquely tailored air defence architecture that draws inspiration from global systems like the Iron Dome but is firmly rooted in its own strategic imperatives. Through programmes like Project Kusha, integration of the S-400 and a robust portfolio of indigenous missile systems, India is creating a defence ecosystem that can meet the challenges posed by both conventional military threats and emerging asymmetric warfare. India's focus on multi-layered, high-performance and indigenously developed systems reflects a forward-looking approach to national security. The era of Iron Dome-inspired thinking is here, but in India, it comes with a distinct identity and strategic vision.
Boston Globe
01-05-2025
- Business
- Boston Globe
Will China tariffs ruin Christmas? Trump doesn't rule out fewer toys on the shelves.
'It'll happen,' he said. Then, in one of his trademark asides: 'Somebody said, 'Oh, the shelves are going to be open.' Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up It was an uncharacteristic swipe at kiddie consumerism — and a shrug at potential holiday shortages. It sounds unreal — the president of the richest country shrugging off empty store shelves. But the risk is very real. Advertisement 'We have a frozen supply chain that is putting Christmas at risk,' Greg Ahearn, chief executive of the Toy Association, a US industry group representing 900 companies, China produces nearly 80 percent of all toys and 90 percent of Christmas goods sold in America, according to the Times. Those imports are being hit with tariffs of up to 145 percent. Advertisement And it's not just toys that could be in short supply. Shoes and apparel, furniture, auto parts, hardware products, and smartphones top the list of US imports from China. 'While the level and application of tariffs on China across products is still in flux, it is quite possible that we will see serious product shortages,' said Boston College economist Brian Bethune. Still, it's too soon to write off Christmas, or Halloween (the China-dependent costume industry is 'So much can still happen on the trade front and we anticipate a partial roll back of tariffs in the coming months,' said Gregory Daco, chief economist at consulting firm EY-Parthenon. 'We're going to see supply disruptions for sure. The question is really what happens with tariffs in the coming weeks as there currently is an inventory buffer to prevent shortages.' New data show just how much companies rushed to stock up. Imports surged 40 percent in the first three months of the year, the Commerce Department The increase, the biggest since the economy was reopening from the pandemic in the third quarter of 2020, was fueled by 'frontloading' — businesses buying up imported goods before new tariffs kicked in. The gap between imports and exports cut a record 5 percentage points from gross domestic product, leaving the economy 0.3 percent smaller in the first quarter than in the final three months of 2024. (Imports subtract from GDP because they represent spending on goods made elsewhere.) While it was the first drop in quarterly GDP in three years, a recession isn't a foregone conclusion. Advertisement The tariff shock could prove temporary. A separate measure of economic health — called Trump trade adviser Peter Navarro told CNBC that the GDP report was 'the best negative print I have ever seen in my life.' But there's good reason to be nervous. Frontloading sets the stage for a sharp falloff in purchases down the road, Daco, the EY-Parthenon economist, said in a note. That will be a 'far more troubling phase of the ongoing economic slowdown,' he said. Trump's tariff wall is unraveling a post-World War II trading system built on cheap imports. Trump says his trade policy will revitalize US manufacturing, create good—paying factory jobs, and generate revenues that can be used to lower taxes. He's warned of initial disruption but insists the country will be better off in the long run. But most economists — and a growing number of business leaders — disagree. Consumer confidence has plunged. Forecasters put What's next? A Advertisement But there's no denying the outlook has darkened. Recession or not, too much winning isn't likely to be our big problem this year. Material from prior Globe coverage was used in this report. Larry Edelman can be reached at
Yahoo
01-05-2025
- Business
- Yahoo
The month that Trump blinked on trade
In early April, historic tariffs of 10% on nearly all countries in the world went into effect in a move that was seen as just the latest escalation in President's Trump absolutist tariff war. But in the month since — with some exceptions and plenty of White House saber-rattling — the direction of Trump's trade war has mostly been moving in the direction of easing. The president has offered, by Yahoo Finance's count, at least five significant rollbacks of his previously absolutist tariff agenda and rhetoric over that time — including some moves he and his team previously said would never happen. "I'm giving them a little bit of a break," said Trump during a Michigan rally this week of his latest adjustment on auto tariffs, adding, "it's called a little flexibility." That flexibility has indeed been in evidence for weeks now, with Trump offering retreats on things like reciprocal, technology, and automaker tariffs as well as rhetorical shifts on his approach to China and specific companies. It's an important shift to close out Trump's first 100 days in office and a reflection of how the president's tariff plans bumped up against the reality of the markets and the global economy. White House officials deny there is any shift underway, saying instead the president's door is always open for talks and it's part of a negotiating process that will lead to better results down the line. "Trust in Trump," White House press secretary Karoline Leavitt offered at one point recently on the question of ongoing disruptions. Either way, stocks have responded. The benchmark S&P 500 (^GSPC) hit a low of 4,835 on April 7, according to Yahoo Finance data. That was just before Trump's first major concession. That came April 9, when he announced he would authorize a 90-day pause on his reciprocal tariff plans (leaving those April 5 10% duties in place but pausing a second wave that had been planned on top of them) because he noted people were "yippy" and "afraid". Markets have often been on the rise since then, but the path ahead is still uncertain, with many of Trump's concessions described as temporary and the president often laying out a vision of tariffs that sees duties high and in place for years. China was not included in the April 9 pause, with Trump instead raising rates on that country to an eye-watering 145%. But China and President Xi Jinping only had to wait a few days for significant concessions, with the White House revealing on April 11 an important win for Apple (AAPL) and other China-dependent technology giants in the form of exclusions for smartphones, computers, semiconductors, and other electronics from the president's "reciprocal" tariffs. That was followed by two key rhetorical shifts. On April 14, Trump said that tariff exceptions for companies could be a feature of his plans going forward, noting, "There'll be maybe things coming up ... I helped [Apple CEO] Tim Cook recently." Then, on April 22 — day 93 of Trump's presidency — he offered a new vision of the endgame for talks with China. He suggested that the 145% tariff was a negotiating tactic. "145% is very high, and it won't be that high," he said of his plans for duties on Chinese goods. "It will come down substantially, but it won't be zero." It was a White House shift — first telegraphed by Treasury Secretary Scott Bessent — that gave markets a 2.5% boost. Trump's latest pivot came this week as he signed executive orders to provide some exemptions and rebates on tariffs on foreign cars and parts imports from overseas. "Ford welcomes and appreciates these decisions by President Trump," Ford (F) CEO Jim Farley said in response to the move. The outstanding question as markets look to Trump's next 100 days is perhaps whether Trump's moderating moves on tariffs and receptiveness to business concerns will last. "Right now they're going to be happy with anything that's thrown their way," Cox Automotive executive analyst Erin Keating said in a live appearance on Yahoo Finance, referring to the auto tariff reductions. She added that uncertainty for automakers and other importers is still predent and the move is "not overwhelming me with a lot of great news from the bottom-line perspective.' And rhetorically at least, Trump has said he has the same endgame in mind as ever, calling most relief temporary with negotiations ongoing that may lead to continued disruptions — but ending with a better deal for the US. That uncertainty is unlikely to dissipate anytime soon, as Trump is also clear about what he intends to do if talks don't go his way. Speaking of his reprieve on autos this week, Trump reiterated that he views them as a temporary measure to give automakers a window to move their production to the US. "We'll give them a little time before we slaughter them if they don't do this," Trump said. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Sign in to access your portfolio
Time of India
25-04-2025
- Business
- Time of India
Elon Musk's DOGE Tech Support T-shirt is gone, changed to this…
Elon Musk , Tesla 's CEO, hinted at stepping back from his role in the Department of Government Efficiency (DOGE) by donning an X-branded T-shirt in a recent X post, a symbolic shift from his 'Tech Support,' and " DOGE " T-shirts, that he have frequently worn since the Donald Trump took over the White House, jokingly saying he's the tech support of the Trump administration . Elon Musk may finally be making the switch from politics to his businesses back — elonmusk (@elonmusk) This post comes days after Tesla's April 22 earnings call, where Musk addressed shareholder concerns about his divided focus amid a 20% drop in car sales and a 70% plunge in profits for Q1 2025. During the call, Musk announced he would 'significantly' reduce his DOGE time starting May, allocating only one to two days per week to the initiative, stating, 'Starting next month, I'll be allocating far more of my time to Tesla.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People In Uttar Pradesh Say Goodbye To Mosquitoes With This Revolutionary Solution Mosquito Eliminator Read More Undo The T-shirt, featuring the X logo, reflects Musk's pivot back to his business empire, particularly X Corp , which recently reclaimed its $44 billion valuation. His DOGE role, aimed at slashing federal spending under Trump's administration, has drawn criticism for distracting him from Tesla, fueling boycotts and protests that Musk blamed for the company's sales slump. Tesla's stock, down 37% this year, rose over 5% in after-hours trading post-earnings. Musk's political stint, including his $250 million contribution to Trump's re-election, has been contentious. While he called DOGE work 'critical,' he emphasized Tesla's priority, citing challenges like trade tariffs impacting its China-dependent supply chain. The company also faces fierce competition and plans to launch a cheaper Model Y and a robotaxi service in 2025. Analysts like Dan Ives see this as a 'fork in the road' moment for Tesla, urging Musk to refocus on engineering to restore the company's trajectory.
