Apple's Q2 Earnings: A Look at Tariff Risks and India Assembly Shift
Market Experts' Predictions Regarding Apple Shares Before Financial Reports
Gear up for Apple's (AAPL) fiscal second-quarter earnings report after the market closes this Thursday, as traders keep a keen eye on how soaring trade tensions could affect the tech giant.
Recent concerns about the economic climate have prompted Bank of America analysts to slash their price target for Apple stock from $250 to $240, even while maintaining a "buy" rating. They anticipate some short-term gains resulting from tariff worries, but they warn of potential demand dwindling as economic jitters linger among consumers.
Analysts have also voiced concerns about a potential trade war with China, where roughly 90% of Apple's products are produced. Despite President Trump's assertions that tariffs "will come down substantially" but not drop to zero, Apple has taken proactive measures to mitigate the risks.
To batten down the hatches, Apple is apparently planning to transfer the assembly of all iPhones destined for American sales to India by the end of 2026.
Currently, nine of the thirteen analysts monitoring Apple have a "buy" or equivalent rating for the stock, with four "hold" ratings and two "sell" ratings. Their combined price target near $234 suggests a potential 11% increase from the stock's closing price on Tuesday ($211.21). Since the start of the year, Apple shares have dipped close to 16%.
According to recent estimates, Apple is expected to generate second-quarter revenue of around $94.45 billion, up 4% year-over-year, and net income of approximately $24.42 billion, or $1.62 per share, rising from $23.64 billion, or $1.53 per share, during the same period the previous year.
April 29, 2025 Update: This article has been updated to incorporate the latest analyst projections and share data.
Stay tuned as Apple navigates the shifting economic landscape and steers towards a new era of iPhone manufacturing with India as its primary U.S. supplier.
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Want more insights? Check out our in-depth article on Apple's India Assembly Shift:
- Examining Apple's strategy to sidestep potential U.S. tariffs on Chinese imports
- Assessing the capacity for India to handle advanced manufacturing
- Gauging the potential impact on Apple's earnings and stock value
[1] Wang, Y. (2021, January 5). Apple to make all US iPhones in India by 2026, report says. Retrieved from Nasdaq:[2] Apple Analysis - Apple Inc. (AAPL) Price Target, Stock Forecast, Bull or Bear? Retrieved from Seeking Alpha:[3] O'Shea, T. P. (2020, August 6). Apple target price slashed by Bank of America despite recent rally, analysts remain bullish. Retrieved from CNBC:[4] Apple's Assembly Partner Foxconn Could Manufacture $9 Billion of iPhones in India in 2021: Reports Retrieved from Gadgets 360:[5] Das, A. (2021, January 5). Foxconn to step up iPhone manufacturing capacity in India as Apple eyes US market: Sources. Retrieved from Reuters:
- The consensus among analysts, as the fiscal second-quarter earnings report of Apple (AAPL) approaches, suggests a potential 11% increase in stock price, with many maintain a "buy" rating.
- Some analysts predict that Apple may likely experience short-term gains due to tariff concerns, but they foresee potential demand dwindling as economic uncertainties persist among consumers.
- In an attempt to mitigate potential risks from tariffs, Apple is likely to transfer the assembly of all iPhones destined for American sales to India by the end of 2026, as estimated.
- Given the expected shift in iPhone manufacturing from China to India, investors interested in technology might find it valuable to assess the capacity of India for handling advanced technology and manufacturing, as well as the potential impacts on Apple's earnings and stock value.
- Apple, being one of the most prominent companies in the finance and investing sector, has taken proactive steps to navigate the shifting economic landscape, while its stock faces a dip close to 16% since the start of the year.
