Apple iPhone will not put in India the Chinese tariff: Moffett

Pioneer analyst Craig Movit suggests any plans to transfer the iPhone to India unrealistic.

Movit, who was classified as the largest analyst several times by institutional investor, sent a memorandum to customers on Friday after I mentioned the times of the Financial Times apple It was aimed at turning production towards India from China by the end of next year.

It wondering how the step can reduce the costs associated with definitions because the iphone ingredients will remain in China.

“You have a huge list of problems created by the definitions, and the transition to India is not solved all the problems. It has now been granted, it helps to some extent,” said CNBC.Fast money“Friday.” I would like to wonder how to do this. “

Moffett claims that it is not easy to diversify to India – customer informing that the Apple supply chain will continue to be based in China and is likely to face resistance.

He wrote to the clients: “The bottom line is the global trade war is a battle of efforts, which affects costs and sales. The transfer of assembly to India may (and we confirm may help in the past). The latter may eventually be the biggest issue.”

Moffett reduced the Apple price on Monday to $ 141 from $ 184 per share. It involves a 33 % decrease from the closure of Friday. The target price is also low on the street, according to FactSet.

“I do not think about myself as the largest apple bear,” he said. “I think Apple is very. My anxiety about Apple was more evaluation than the company.”

Moffett has obtained a “sale” rating on Apple since January 7. Since then, the company’s shares have decreased by 14 %.

“Nothing is because Apple is a bad company. They still have a wonderful public budget (and) the great consumer concession,” he said. “It is just the fact that there are no good answers when you are a product company, and your products will be very tariff, and you are heading to a market that is likely to have at least a slowdown in demand for consumer because of the macroeconomic economy.”

Movit notes that Apple does not also get the help of its transportation companies to reduce the blow of the tariffs.

“You also have the destruction of the demand created by potential higher prices. Remember, you have had AT & Tand Verizon and T. Mobile Every week it comes out and says that we will not guarantee the additional cost of introductory phones (on). “The consumer will have to pay for that. Therefore, you will have some destruction that will appear in longer periods to keep and slower upgrade rates – all of which are probably fluctuating estimates in the consensus next year.”

According to Movit, the reverse reaction against Apple in China to the American definitions will also harm iPhone sales.

“It is a very real problem,” Movit said. “Volumes are really heading to Huaweis, Vivos and local competitors in China instead of Apple.”

Apple out of the winning week – an increase of more than 6 %. It comes before the iPhone quarterly profits report next Thursday after the market is closed.