Apple faces 'low likelihood' that its iPhones will be subject to tariffs, says Wedbush

Wedbush analyst Daniel Ives wrote Friday that Apple Inc.'s selloff due to escalating trade tensions with China looks overdone. "We continue to strongly believe that for a company that employs over 1 million Chinese workers with its flagship Foxconn factory and is a major strategic player within the China technology ecosystem...from a supply chain perspective Apple will not have major roadblocks ahead despite the loud noise," he wrote. "Taking a step back, we ultimately believe there is a low likelihood that Apple and its iPhones feel the brunt of the tariffs given its strategic importance domestically as well as [Chief Executive Tim] Cook's ability to navigate these issues in the past with Trump and K Street." He maintained an outperform rating and $235 target price on the stock, which has gained 14% so far this year, as the Dow Jones Industrial Average has increased 9%.

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