Apple defies tariffs: Morgan Stanley significantly raises price target

Apple could benefit from political uncertainty in the coming months. Morgan Stanley has raised its price target for Apple stock to $235. The reason: New tariffs imposed by the Trump administration are unsettling consumers worldwide, which will have a positive short-term impact on Apple's sales figures. Find out exactly what happened and what it means for Apple and you here.

Economic instability is usually bad for large companies. Things are different for Apple at the moment. New tariffs, particularly against China, and the constant back-and-forth in US trade policy are causing many consumers to buy new devices faster than planned. This development could boost Apple's revenue and profits in the short term. Morgan Stanley sees this as a clear opportunity and is adjusting its expectations for the tech giant accordingly.

Consumers anticipate tariffs

At the beginning of April, President Trump introduced new global tariffs on what he called "Liberation Day." The measures seemed chaotic and difficult to predict for many consumers. The result: Many people who hadn't planned to buy a new iPhone or Mac until late 2025 or even 2026 have brought forward their purchases. This advance demand is generating additional revenue for Apple as early as the first half of 2025. Although the new tariffs didn't officially go into effect until April, prior announcements had already had an impact on consumer behavior. Some consumers had already made purchases in the March quarter because of the announcements. As a result, Apple is likely to see a slight increase in revenue and profit in the second quarter of 2025. The forecast for the third quarter is also more optimistic.

Apple's response to the challenges

Despite the difficult political situation, Apple remains flexible. The company will do everything in its power to minimize price increases for end consumers. Part of the additional costs will be distributed along the supply chain. At the same time, Apple could discontinue the cheapest storage variants of its devices. This would increase the base prices for iPhones and Macs without appearing like a direct price increase. This strategy is intended to help keep demand stable even as global production costs rise. Morgan Stanley praises this approach and sees Apple well positioned to mitigate the impact of the tariffs.

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The Trump administration's complicated tariff policy

The new tariffs on "Liberation Day" were not President Trump's first interventions. On the day of his inauguration, he ordered the creation of an External Revenue Service and imposed the first tariffs on Mexico and Canada. This was followed by gradual tariff increases against China and other countries. The tariffs against China, in particular, had an immediate impact on trade. In April, tariffs on China were raised to 125 percent, while a uniform tariff rate of 10 percent was introduced for the rest of the world. There were occasional short-term exceptions for certain products, including those from Cupertino.

However, Trump emphasized that these exemptions would only be temporary, and that semiconductor products—a key component for Apple—could also be affected by new tariffs in the future. The constant shifts in tariff policy create uncertainty. Analysts believe, however, that Apple is better able to handle these fluctuations than many other companies. At the same time, government officials raise questions about whether the targeted granting of exemptions could be signs of favoritism or corruption.

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What remains open

The Morgan Stanley report does not address how the early purchases might affect the launch of the iPhone 17 in September or the Christmas quarter in the long term. Apple itself is also expected to be rather reserved on this topic when it officially announces its quarterly results (via Morgan Stanley).

Apple benefits from early purchases for the time being

For Cupertino, the current instability could prove to be an advantage in the short term. Consumers are securing new devices now before potential further price increases take effect. This will provide Apple with solid figures for the first two quarters of 2025 and strengthen its market position. However, many uncertainties remain in the long term, such as new tariffs on semiconductors or political interventions. Morgan Stanley remains optimistic nonetheless and is sending a clear message: With a price target of $235, they have high hopes for Apple. (Image: Shutterstock / Tada Images)

Disclaimer: No recommendation for investments

This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.