00:00 Adam Shapiro
Now time for some of today’s trending tickers. You can scan the QR code below to track the best and worst performing stocks of the session with Yahoo Finances Trending Ticker’s page. Joining me now onset, we’ve got our very own Alexandra Canal, and we’re taking a look at a couple of tech names making changes amid President Trump’s tariff policies. So let’s talk about Apple and Micron. First up, Apple, planning to shift more iPhones to the US from India to offset tariffs on China. That’s according to the Wall Street Journal report. New tariffs on goods from China could raise the price to manufacture an iPhone by over 45%, from $580 to $850. That’s according to Tech Insights. Because of this, some consumers are rushing to upgrade before tariffs can take effect. Uh I’m checking my model right now. I’m at a 12 Pro Max.
00:55 Alexandra Canal
I’ve been thinking about it. I dropped my phone pretty often, so it’s kind of cracked right now, and I’m wondering do I just have to go invest.
01:04 Adam Shapiro
I think you might just need to get a tempered glass screen.
01:07 Alexandra Canal
I know, I know, that’s one of my problems here, but it it really goes to show that tariffs are obviously top of mind for investors, but also top of mind for everyday consumers when it comes to the products that we use every single day. Like we were just discussing, a lot of consumers weighing whether or not you go and upgrade your phone, you get a new iPhone. There’s also been a lot of consumers going out there and trying to take advantage of deals from some of their phone carriers like Verizon because there’s been some speculation that once the tariffs hit those types of discounts and promotions could go away. And I mean Apple shares, they’ve just been rocked by these tariffs off 17% over a five-day period. Over $600 billion has just been completely eliminated from the stock over toward the lows of the 52-week range. Um and it’s interesting because Apple is planning to spend $500 billion in the United States, which we know Trump loves. He’s talked about that often, but this is a company that’s very exposed to a lot of those heavily tariffed areas like you think China, India, Vietnam, Thailand. So it’ll be interesting with the amount that they’re planning to invest in the US, that leads to some exemptions or perhaps a de-escalation of sorts in the coming days and weeks ahead. And you know, so far no no reciprocal tariffs have been implemented yet, but that’s all planning to come tomorrow.
02:53 Adam Shapiro
You know, one of the reasons I need a new iPhone is because I can’t even install some apps right now because it requires iOS 17 or greater and um
03:04 Alexandra Canal
You definitely need a new iPhone though.
03:07 Adam Shapiro
Oh yeah, has to happen. Next up, let’s talk Micron. It’s going to impose a surcharge on some products starting Wednesday as tariffs kick in according to Reuters. Micron has manufacturing facilities in China, Taiwan, Japan, Malaysia, and Singapore, all subject to tariffs under President Trump’s policies. So we’re taking a look at shares here. They are higher by about 3.3%.
03:35 Alexandra Canal
Yeah, but very similar story to Apple, right? I mean down 20% over a five-day period, low end of the 52-week range, like we just said, heavily exposed to those tariffed countries. They do have US customers that include technology companies, automotive companies. So potential trickle-down effect on the impact that we could see on the consumer side as well. Now what’s interesting here is that semiconductors were exempt from these reciprocal tariffs, but for a company like Micron, that just makes up a portion of their portfolio. And they did warn last month during their earnings call that look, they are going to have to raise prices on those consumers. How much and the intensity of that remains to be seen. Uh but again, it just goes to show how big tech is really vulnerable to a lot of these tariffs and also depending on what we see with EU retaliation, it also has me thinking about anti-trust and what laws the EU could potentially say some of these US companies are violating. So there’s a big ripple effect here that really goes beyond tariffs when we think about some of the retaliate retaliation, I should say, from these bigger countries.
05:02 Adam Shapiro
Yeah, you know, for Micron it’s also going to come down to what they’re saying about demand once they finally do report earnings. We’re weeks away from that. However, thinking through what the demand profile and the reception is to them potentially raising prices or adding the surcharge on and what they’re hearing from customers.
05:27 Alexandra Canal
Yeah, demand and then also how heavily these companies are continuing to spend on AI. I mean, we know that’s been a big priority for investors, but if these tariffs are going to eventually hit profits, are they going to pull back at all and how will we see that reflected in the stock price?
05:42 Adam Shapiro
Spot on, Alex. Thanks so much for taking some.
