Apple's (AAPL) overwhelming dependence on China for its supply chain and production makes the tariffs imposed by US President Donald Trump "a complete disaster" for the iPhone maker, Wedbush Securities said Sunday.
No US technology company is more negatively affected by the latest tariffs than Apple, Wedbush analysts, including Daniel Ives, said in a note to clients, noting that 90% of iPhones are produced and assembled in China.
Even as the company has diversified its supply chain to other parts of the world, "the hearts and lungs of the Apple supply chain are cemented in Asia," the analysts said. It would likely take three years and cost $30 billion to move just 10% of its supply chain to the US from Asia, according to the note.
Wedbush lowered its price target on the Apple stock to $250 from $325 while maintaining its outperform rating.
Apple shares were down 3.5% in recent premarket activity Monday.
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