Apple's Customers Will Pay A Premium For Made-In-USA Phone, Analyst Suggests

Comments
Loading...
President Donald Trump's proposed border tax on products made outside of the United States but intended for American customers poses a major problem for many companies that rely on imports.

Apple Inc. AAPL investors have reason to be concerned over Trump's proposal, but perhaps they shouldn't be as there may be an easy solution.

Brian White, an analyst with Drexel Hamilton, was a guest on CNBC's "Squawk Box" segment on Thursday and offered his solution. Specifically, the analyst noted that there will be a lot of pressure among American companies to bring manufacturing jobs back to the United States, and Apple could take advantage of this by selling a "Made in America" special-edition iPhone at a $100 to $200 premium.

Doing so would also alleviate some of the financial pressure associated with moving some of the production of Apple's devices back to the States.

"If I where Apple that's what I would do," he continued. "I would make an entire marketing campaign — you can actually boost your margins if you did that."

White also believes Apple should also take advantage of another Trump proposal of making it more lucrative than before to repatriate overseas cash. Apple's cash hoard stands at more than $200 billion, and this could be used to fund domestic manufacturing and even boost the per share dividend.

AAPL Logo
AAPLApple Inc
$236.00-1.28%

Stock Score Locked: Edge Members Only

Benzinga Rankings give you vital metrics on any stock – anytime.

Unlock Rankings
Edge Rankings
Momentum84.99
Growth61.13
Quality89.91
Value7.41
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm

Posted In: