Apple(AAPL) CNBC·2025-04-26 15:07Core Viewpoint - Analyst Craig Moffett believes that Apple's plans to shift iPhone assembly to India are unrealistic and will not effectively address the cost issues related to tariffs [1][2][3]. Group 1: Supply Chain and Production - Moffett questions the feasibility of diversifying Apple's supply chain to India, stating that the supply chain would still be heavily reliant on China, which could face resistance [2][3]. - He emphasizes that moving assembly to India might only marginally help with tariff-related costs, while the impact on sales could be more significant [3]. Group 2: Financial Outlook - Moffett has reduced his price target for Apple shares from 141, indicating a potential 33% decline from the previous close, which is the lowest target on Wall Street according to FactSet [3]. - Despite having a "sell" rating on Apple since January 7, Moffett acknowledges the company's strong balance sheet and consumer franchise, attributing concerns more to valuation than company performance [4][5]. Group 3: Market Dynamics - The analyst highlights that the ongoing global trade war is affecting both costs and sales, with potential demand destruction due to higher prices resulting from tariffs [5][6]. - Moffett notes that major carriers like AT&T, Verizon, and T-Mobile will not absorb the additional tariff costs, leading to increased prices for consumers and potentially lower demand for iPhones [6]. - He points out that Apple is losing market share in China to local competitors like Huawei and Vivo, exacerbated by the backlash against the company due to U.S. tariffs [6][7].