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Why Apple Stock Surged Today

What happened<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”Shares of strongApple/strong (NASDAQ: AAPL) jumped on Tuesday after the Trump administration opted to delay the implementation of tariffs on certain Chinese goods. With cellphones and other electronics now free from the planned 10% tariff until mid-December, Apple’s upcoming iPhone launch and holiday season sales shouldn’t be affected.

Apple stock was up 4.1% at 12:15 p.

m. EST; it had been up as much as 5.

8% earlier in the day.” data-reactid=”17″>Shares of Apple (NASDAQ: AAPL) jumped on Tuesday after the Trump administration opted to delay the implementation of tariffs on certain Chinese goods.

With cellphones and other electronics now free from the planned 10% tariff until mid-December, Apple’s upcoming iPhone launch and holiday season sales shouldn’t be affected. Apple stock was up 4.

1% at 12:15 p.m.

EST; it had been up as much as 5.8% earlier in the day.

So what<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”A 10% tariff on certain Chinese goods not already affected by 25% tariffs, including various electronics, was set to go into effect on Sept. 1.

Apple typically launches new iPhones in September, so the tariff would have been in effect for the launch as well as Apple’s holiday sales season.” data-reactid=”19″>A 10% tariff on certain Chinese goods not already affected by 25% tariffs, including various electronics, was set to go into effect on Sept.

1. Apple typically launches new iPhones in September, so the tariff would have been in effect for the launch as well as Apple’s holiday sales season.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”That 10% tariff is now being delayed until Dec. 15 on some items, including cellphones, laptops, and game consoles.

Apple has been diversifying into services, but hardware sales, and especially iPhone sales, remain the company’s core business.” data-reactid=”31″>That 10% tariff is now being delayed until Dec.

15 on some items, including cellphones, laptops, and game consoles. Apple has been diversifying into services, but hardware sales, and especially iPhone sales, remain the company’s core business.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”This tariff delay will prevent Apple from needing to either eat the cost of the tariffs or raise prices on its hardware. After a;a href=https://www.

fool.com/investing/2019/02/05/these-2-tech-giants-raised-prices-at-the-worst-tim.

aspx?utm_campaign=articleamp;utm_medium=feedamp;referring_guid=62b71cad-5212-4924-9ef9-4e979c0e59d4amp;utm_source=yahoo-host rel=nofollow noopener target=_blankweak iPhone launch in 2018/a, partly due to high prices, Apple may not be able to pass higher costs on to its customers without suffering a big drop in unit sales.” data-reactid=”32″>This tariff delay will prevent Apple from needing to either eat the cost of the tariffs or raise prices on its hardware.

After a weak iPhone launch in 2018, partly due to high prices, Apple may not be able to pass higher costs on to its customers without suffering a big drop in unit sales.

Now what<p class="canvas-atom canvas-text Mb(1.

0em) Mb(0)–sm Mt(0.8em)–sm” type=”text” content=”While Apple stock is surging on this tariff delay, the 10% tariff will go into effect later this year if the U.

S. and China don’t reach a trade deal by the new deadline, and if the tariffs don’t get delayed further.

Apple’s iPhone sales are already slumping; even higher prices will only make that trend worse.” data-reactid=”34″>While Apple stock is surging on this tariff delay, the 10% tariff will go into effect later this year if the U.

S. and China don’t reach a trade deal by the new deadline, and if the tariffs don’t get delayed further.

Apple’s iPhone sales are already slumping; even higher prices will only make that trend worse.

<p class="canvas-atom canvas-text Mb(1.

0em) Mb(0)–sm Mt(0.8em)–sm” type=”text” content=”Apple’s holiday season may have been saved by this delay, but the company’s;a href=https://www.

fool.com/investing/2019/01/10/tim-cook-doesnt-get-how-serious-the-iphone-slowdow.

aspx?utm_campaign=articleamp;utm_medium=feedamp;referring_guid=62b71cad-5212-4924-9ef9-4e979c0e59d4amp;utm_source=yahoo-host rel=nofollow noopener target=_blankheavy dependence on the iPhone/a;remains a problem.” data-reactid=”35″>Apple’s holiday season may have been saved by this delay, but the company’s heavy dependence on the iPhone remains a problem.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”a href=http://boards.fool.

com/profile/TMFBargainBin/info.aspx rel=nofollow noopener target=_blankemTimothy Green/em/aem has no position in any of the stocks mentioned.

The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, and long January 2020 $150 calls on Apple.

The Motley Fool has a /ema href=http://www.fool.

com/Legal/fool-disclosure-policy.aspx rel=nofollow noopener target=_blankemdisclosure policy/em/aem.

/em” data-reactid=”36″>Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple.

The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, and long January 2020 $150 calls on Apple. The Motley Fool has a disclosure policy.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”This article was originally published on;a href=https://www.fool.

com/investing/2019/08/13/why-apple-stock-surged-today.aspx rel=nofollow noopener target=_blankFool.

com/a” data-reactid=”37″>This article was originally published on Fool.com

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