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Timing of China tariffs wants help company thrive



Apple CEO Tim Cook visits Apple store in Shanghai, China.

Aly Song | Reuters

Apple's stock is helping lead. The higher the price, the higher the price, the higher the rate at the time of going to market.

Apple, we see certain silver linings relative to timing that may allow Apple to navigate the challenging dynamic better than investors currently expect, "J.P. Morgan analyst Samik Chatterjee said in a note to investors.

Apple's stock rose 1

.6% in trading from its previous close of $ 202.64 J.P. Morgan has an overweight rating of Apple with a $ 243 price target.

One of J.P. Morgan's silver linings is the timing of Apple's new line of iPhones, set to launch next month. The firm estimates the iPhone is 55% of Apple's revenue.

While Chatterjee said that new tariffs are implemented Dec. 15 is silent, the iPhone launch will avoid a bill-of-materials increase in cost of between $ 30 to $ 50 per iPhone. This will allow you to better absorb the cost of the tariffs without raising prices yet for U.S. buyers.

D.A.. Davidson analyst Tom Forte has noted that "China as the greatest risk for AAPL," is citing the company's reliance on China for supplies and its sales to Chinese consumers. THERE. Davidson has a buy rating on Apple with a $ 270 a share price target.

"That said, we believe the situation may not be as bad as investors' fear," Forte said.

Forte said Apple has done "an amazing job" of mitigating the impact of tariffs, especially by working with the U.S. government. Apple has helped to "exclusion of products from previous tariffs and the tariff to enable it to at least one more window of opportunity to sell next-generation iPhones without being affected by tariffs," Forte noted. [19659002] BOTH the US and Chinese governments to minimize the impact of tariffs on it, "Forte added.

– CNBC's Michael Bloom [19659013] contributed to this report.


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