Question 1

Why has Apple stock dropped 14% from its highs?

Accepted Answer

The primary catalyst is escalating tariff concerns targeting China-assembled electronics. Apple manufactures the majority of its iPhones in China, and proposed tariffs of up to 25% could significantly increase production costs or consumer prices. The selloff reversed the late-2025 rally that was driven by Apple Intelligence hype and a record holiday quarter.

Question 2

Is Apple stock a buy at $248.75?

Accepted Answer

At 31.5x trailing earnings, Apple is fairly valued but not cheap. The stock offers better risk-reward than it did at $288, but a more compelling entry point exists in the $220-$230 range where tariff downside would be more fully priced in. Current holders should hold; new buyers may benefit from patience.

Question 3

How could tariffs impact Apple's earnings?

Accepted Answer

A 25% tariff on China-assembled goods could compress gross margins by 150-250 basis points and reduce annual EPS by $0.80 to $1.20. However, Apple has been diversifying production to India, Vietnam, and Indonesia since 2019 and has pricing power to pass some costs to consumers, which should partially offset the impact.

Question 4

When is Apple's next earnings report?

Accepted Answer

Apple reports Q2 FY2026 earnings on April 30, 2026. The market will focus on tariff-related margin guidance, Apple Intelligence adoption metrics, and any updates to full-year FY2026 revenue and earnings forecasts.

Quarter	Revenue	Net Income	EPS
2025-12-27	$143.76B	$42.10B	$2.85
2025-09-27	$102.47B	$27.47B	$1.85
2025-06-28	$94.04B	$23.43B	$1.57
2025-03-29	$95.36B	$24.78B	$1.65

Apple Inc.

Price History (1 Year)

AI Analysis

AAPL at $249: Tariff Fears Meet Record Earnings

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