Apple $(AAPL)$ is seeing some breathing room after signs that tariffs on smartphones and tech components may be reassigned to other Section 232 categories over the next month or two, Wedbush said in a note emailed Monday.
The firm described a "non-stop tariff news cycle" over the weekend, starting with reports of potential exemptions for semiconductors, smartphones, and other tech parts, and ending with clarification from the White House that these items were not exempt, but would instead be moved into other tariff classifications in the near term.
Wedbush said this allows Apple to plan its supply chain around tariff exposure, with India likely to become a key focus area for expanded iPhone production.
The firm also noted that the latest developments mean Apple may not need to immediately pass significant price increases to the US consumers. The White House's signals of flexibility on tech and semiconductor components were described as a positive shift compared to the darker outlook over the previous 10 days.
While tariff-related challenges remain, Wedbush said the combination of base tariffs and potential 232 measures could be manageable, enabling Apple to plan for cost impacts and potentially pass some on to consumers while absorbing the rest across its supply chain.
Wedbush maintained its outperform rating and $250 price target on Apple.
Shares of Apple were up 3.6% in recent Monday trading.
Price: 205.20, Change: +7.04, Percent Change: +3.56
