Apple shares decline as HSBC cuts price target over iPhone tariff concerns

“Apple shares were down 2.5% in pre-market Monday after HSBC cut the tech giant’s price target over fears of its exposure to the trade war between the U.S. and China,” Elliot Smith reports for CNBC.

“HSBC Global Co-Head of Consumer and Retail Research Erwan Rambourg decreased Apple’s price target to $174 a share from $180, retaining a ‘reduce’ rating amid renewed Chinese growth risks and tariffs,” Smith reports. “Apple’s fall Monday was accentuated by a global sell-off in tech shares after Google suspended some business activity with Chinese telecoms giant Huawei over the weekend.”

“The analyst note suggested that recent tariff hikes on imports of Chinese goods into the U.S., and the subsequent retaliation from Beijing, could either force Apple to increase prices, driving down demand given consumer sentiment about recent iPhone launches being ‘too pricey,’ or take a hit on margins,” Smith reports. “‘Second, there is a risk that in the Chinese market, consumers accelerate the shift to smartphone substitutes notably by going to local brands with comparable functionality (Huawei, Xiaomi),’ Rambourg added.”

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MacDailyNews Take: This too shall pass.

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