Apple (AAPL) Stock Faces “More Downside Than Upside” as Jefferies Flags Tariff Concerns

Core Viewpoint - Apple Inc. is facing significant challenges due to potential tariffs on Chinese imports, which could negatively impact its earnings and production capabilities [1][2][3] Group 1: Tariff Implications - Jefferies has reiterated a rating of "Underperform" for Apple and lowered its price target to $203.07 from $205.16, citing more downside than upside for the stock [1] - The proposed 100% tariff on Chinese goods starting November 1 could severely affect Apple, as the company relies heavily on China for assembly [1][2] - If Apple faces a 130% tariff on an estimated 9 million units, it could result in a 5% hit to EPS in FY2026 [2] Group 2: Production and Demand Challenges - China is unlikely to meet 100% of U.S. demand for iPhone 17s with production from India, leaving Apple vulnerable to supply chain disruptions [3] - There is increasing pressure from the U.S. administration for Apple to produce more iPhones domestically, especially amid escalating U.S.-China tensions [3] - The latest iPhone 17 sales momentum has shown further slowdown, compounded by unfavorable product mix and higher material costs [3]