Tariffs A 'Push And Pull' Event
U.S. President Donald Trump's tariff policies on China remains difficult to quantify, especially for a company like Apple, Caso said. For example, Apple benefited from tax change policies within China but the iPhone maker faces the prospect of even more tariffs in December.
It's also unclear how much of present and future tariffs will be absorbed by Apple's suppliers in China.
"There's been a little push and pull and obviously the tariff stuff has been very difficult to handicap at this point," Caso said.
Price points of new Apple products expected to be launched at the Sept. 10 event will be a key area of focus -- not only for tariff related reasons but the company may have priced prior iPhone models too high, the analyst said.
No Longer The 'Super Bowl'
Apple fans typically view Apple's end of summer event as the "Super Bowl" of product launches but this is no longer case, Caso said. The past few years have proven to be "not that interesting" and there is no incentive for consumer to buy a new iPhone. However, the sentiment may improve next year when Apple's devices are likely to include 5G technology.
As such, the next six to nine months are likely to be a "difficult" period for Apple as few on the Street are expressing high expectations, the analyst said.
Apple's stock traded down about 1.1% Tuesday morning.
Nomura Cautious On 5G Impact For Apple, Trims iPhone Demand Estimates
Apple Analyst On Tariff Escalation: The 'Nightmare That Doesn't Go Away'
See more from Benzinga
- Citi Turns Bullish On Jabil, Says Customer Risk Concentration 'Played Out'
- Apple Analyst On Tariff Escalation: The 'Nightmare That Doesn't Go Away'
- RBC's Mahaney On Roku Downgrade: We Were Wrong
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.