Morgan Stanley maintains its positive outlook on Apple despite mixed feelings about recent earnings. Apple beat market hopes with $95.4 billion in revenue and $1.65 earnings per share, but its stock fell 4% after the report. The bank stays firm with its $235 price target for Apple shares. It likes what it sees in the short term, but wants more details about plans.
The company faces only $900 million in tariff costs this quarter, showing that its plan to move production from China works well. Foxconn already makes more items in Vietnam, with plans to expand in India and Brazil. But Apple gave no clear answers about how much product will come from these countries next quarter. The lack of detail leaves questions about long-term tariff effects on sales.
Apple sales in Greater China fell to $16 billion. The company blamed currency issues for the drop. CEO Tim Cook said tariffs have not caused early buying of iPhones. The company also stayed quiet about its plan to update Siri. The bank wanted more information about the Services segment guidance, which Apple typically shares every quarter.
The company faces only $900 million in tariff costs this quarter, showing that its plan to move production from China works well. Foxconn already makes more items in Vietnam, with plans to expand in India and Brazil. But Apple gave no clear answers about how much product will come from these countries next quarter. The lack of detail leaves questions about long-term tariff effects on sales.
Apple sales in Greater China fell to $16 billion. The company blamed currency issues for the drop. CEO Tim Cook said tariffs have not caused early buying of iPhones. The company also stayed quiet about its plan to update Siri. The bank wanted more information about the Services segment guidance, which Apple typically shares every quarter.
