Latest news with #Flextronics
Business Mayor
23-05-2025
- Business
- Business Mayor
Trump says Apple must pay a 25% tariff on iPhones not made in the U.S.
Apple CEO Tim Cook, left, and President Donald Trump speak to the press during a tour of the Flextronics computer manufacturing facility in Austin, Texas, where Apple's Mac Pros are assembled, Nov. 20, 2019. Mandel Ngan | AFP | Getty Images President Donald Trump said in a social media post Friday that Apple will have to pay a tariff of 25% or more for iPhones made outside the United States. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,' Trump said on Truth Social. Shares of Apple fell about 2% on Friday after the post. Apple's flagship phone is produced primarily in China, but the company has been shifting manufacturing to India in part because that country has a friendlier trade relationship with the U.S. Some Wall Street analysts have estimated that moving iPhone production to the U.S. would raise the price of the Apple smartphone by at least 25%. Wedbush's Dan Ives put the estimated cost of a U.S. iPhone at $3,500. The iPhone 16 Pro currently retails for about $1,000. This is the latest jab at Apple from Trump, who over the past couple of weeks has ramped up pressure on the company and Cook to increase domestic manufacturing. Trump and Cook met at the White House on Tuesday, according to Politico. Treasury Secretary Scott Bessent said in an interview with Fox News on Friday that he was not part of the meeting at the White House but that the Apple situation could be part of the Trump administration's push to bring 'precision manufacturing' back to the U.S. 'A large part of Apple's components are in semiconductors. So we would like to have Apple help us make the semiconductor supply chain more secure,' Bessent said. Cook gave $1 million to Trump's inauguration fund and attended the inauguration in January. Apple has announced a $500 billion spend on U.S. development, including AI server production in Houston. Apple declined to comment for this story. The company said during its May 1 earnings report that it expects about $900 million in additional costs for tariffs in the current quarter. Cook said on the company's earnings call that the tariff outlook was 'very difficult to predict' past June. Foxconn, one of Apple's main iPhone assembly partners, is spending $1.5 billion on expanding its India facilities, the Financial Times reported Thursday. Trump has publicly criticized other major U.S. companies, including Walmart , during his trade war push, but the levies on a specific consumer product is a new step. The exact legal mechanism for the tariff is unclear. Trump followed up his post about Apple with another one calling for a 50% tariff on products from the European Union. Taken together, the posts point to trade tensions increasing again after the U.S. had temporarily lowered many of its levies, including in an agreement with China. Apple also had to navigate tariff threats during Trump's first term, when a 15% tariff on Chinese imports was being considered in 2019. At that time, Cook had a strong relationship with Trump and the final trade deal excluded core Apple products from the duties. As Apple is caught in the U.S. president's crosshairs, the company is also seeing weak demand in China. On Friday the company hiked trade-in incentives for iPhones in China. READ SOURCE
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First Post
18-05-2025
- Business
- First Post
Trump tariffs may push US iPhone users towards repair, instead of replace their old devices
Repair demand may increase if inflation and trade uncertainty continue to affect consumer spending habits. Inflation and trade uncertainty in the US may both be attributed to Trump tariffs read more US President Donald Trump and Apple CEO Tim Cook tour the Flextronics computer manufacturing facility where Apple's Mac Pros are assembled in Austin, Texas. Amid the tariff war with China, Trump wants Apple to manufacture its iPhones in the US. File image/AFP As US trade tensions with China threaten to increase the cost of imported goods, some smartphone users are choosing to repair ageing devices rather than upgrade to newer models. That's the decision one iPhone 12 Mini user made after learning that the phone's battery had degraded to about 80 per cent of its original capacity, according to an article published by The Verge. Rather than spend hundreds on a new device, the user opted for a $90 battery replacement, citing both economic uncertainty and personal preference for the phone's smaller size. STORY CONTINUES BELOW THIS AD The iPhone 12 Mini, released in 2020, is no longer in production. Despite early reviews that raised concerns about battery life, the compact design remains favored by users seeking a lighter, more portable phone. More from Tech China's LandSpace launches 6 satellites with methane-powered rocket Some owners have continued to use the model even as its software support and battery performance have begun to wane. The decision to repair rather than replace was partly driven by fears that new tariffs on electronics and components could push up prices in the near future. In early April, the Trump administration introduced sweeping tariffs on Chinese imports, which were followed by new export controls from China targeting rare earth elements essential to the production of high-tech goods. Apple, which relies heavily on international supply chains, has faced challenges during past disruptions. The company's just-in-time manufacturing model, while efficient, can be vulnerable to supply shocks. Experts say that if tariffs persist or expand, consumers may see higher prices on both new devices and replacement parts. Apple has only recently expanded its support for independent repairs, following pressure from regulators and consumer advocates. However, critics say the company's parts pairing requirements and limited availability of official components still pose barriers for many users. Repair demand may increase if inflation and trade uncertainty continue to affect consumer spending habits. STORY CONTINUES BELOW THIS AD According to Bloomberg, the Port of Los Angeles has reported a sharp drop in imports, a signal that broader supply chain constraints may be taking shape. While Apple offers newer models with updated features such as USB-C ports and improved cameras, some users say they see little benefit from annual upgrades, especially if their current phones continue to meet basic needs like calls, messaging, navigation and music. Apple has not commented on how ongoing trade tensions may affect its repair services or product pricing.
Yahoo
07-05-2025
- Business
- Yahoo
Flex (NASDAQ:FLEX) Posts Better-Than-Expected Sales In Q1 But Quarterly Revenue Guidance Misses Expectations
Global manufacturing solutions provider Flex (NASDAQ:FLEX) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 3.7% year on year to $6.40 billion. On the other hand, next quarter's revenue guidance of $6.25 billion was less impressive, coming in 1.7% below analysts' estimates. Its non-GAAP profit of $0.73 per share was 5.2% above analysts' consensus estimates. Is now the time to buy Flex? Find out in our full research report. Flex (FLEX) Q1 CY2025 Highlights: Revenue: $6.40 billion vs analyst estimates of $6.23 billion (3.7% year-on-year growth, 2.6% beat) Adjusted EPS: $0.73 vs analyst estimates of $0.69 (5.2% beat) Adjusted EBITDA: $443 million vs analyst estimates of $514.1 million (6.9% margin, 13.8% miss) Management's revenue guidance for the upcoming financial year 2026 is $25.9 billion at the midpoint, missing analyst estimates by 0.8% and implying 0.3% growth (vs -2% in FY2025) Adjusted EPS guidance for the upcoming financial year 2026 is $2.91 at the midpoint, beating analyst estimates by 1.8% Operating Margin: 4.8%, up from 2.6% in the same quarter last year Free Cash Flow Margin: 5%, down from 9.7% in the same quarter last year Market Capitalization: $14.09 billion "We had a very strong finish to the year, with record adjusted operating margins for both Q4 and for the full year, and we delivered our fifth consecutive year of double-digit adjusted EPS growth," said Revathi Advaithi, CEO of Flex. Company Overview Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ:FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers. Sales Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $25.81 billion in revenue over the past 12 months, Flex is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it's harder to find incremental growth when you've penetrated most of the market. To accelerate sales, Flex likely needs to optimize its pricing or lean into new offerings and international expansion. As you can see below, Flex grew its sales at a sluggish 1.3% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
Yahoo
09-04-2025
- Business
- Yahoo
3 Reasons to Avoid FLEX and 1 Stock to Buy Instead
Shareholders of Flex would probably like to forget the past six months even happened. The stock has dropped 23% and now trades at a new 52-week low of $26.21. This might have investors contemplating their next move. Is there a buying opportunity in Flex, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why we avoid FLEX and a stock we'd rather own. Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ:FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Flex struggled to consistently increase demand as its $25.58 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and signals it's a lower quality business. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Flex's revenue to rise by 1.8%. While this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Flex has shown poor cash profitability over the last five years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 1.8%, lousy for a business services business. Flex isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 10.1× forward price-to-earnings (or $26.21 per share). Investors with a higher risk tolerance might like the company, but we don't really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. We'd recommend looking at one of our all-time favorite software stocks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
