Dan Ives: China Tariff Truce Revitalizes Bull Case for Apple as Half of User Base Approaches Upgrade Cycle
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. Continue reading
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.
