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Apple’s Resilience Amid New Tariff Uncertainty, Analyst Maintains Buy Rating


Apple (NASDAQ:AAPL) remains well-positioned to navigate potential tariff headwinds, according to BofA Securities analysts, who reaffirmed a Buy rating and a $265 price target on the stock. Despite the recent 10% tariff imposed by the U.S. on Chinese imports, BofA believes that any earnings impact on Apple will be minimal, whether the company absorbs the additional costs or chooses to pass them on to consumers through higher pricing.
In the previous tariff cycle, Apple successfully secured an exemption for the iPhone, and while it’s uncertain if the company will receive a similar exception this time, historical precedent suggests the possibility remains. The analysts conducted a detailed earnings impact analysis under two potential scenarios: Apple maintaining current pricing in the U.S. and Apple raising prices to offset tariff costs. Regardless of the approach, they expect only a limited effect on Apple’s earnings, reinforcing the company’s financial resilience.
Beyond the tariff discussion, Apple may find a more favorable regulatory environment should a Republican administration take office. BofA analysts point to the ongoing Department of Justice (DOJ) cases involving both Apple and Google, suggesting that a political shift could result in more lenient outcomes for Big Tech. Additionally, U.S. leadership could push for reduced regulatory oversight from European counterparts regarding the Digital Markets Act (DMA), a set of laws that could impact Apple’s App Store and business practices.
Looking ahead, the analysts remain bullish on Apple’s long-term potential, highlighting its stable cash flows, earnings durability, and ability to benefit from AI advancements—particularly in edge computing on Apple devices.

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