Apr. 3 at 11:16 AM
$AAPL $DELL $IBM $TDC $HPQ
Morgan Stanley says Dell among IT Hardware names exposed to 'calamitous' tariffs
Morgan Stanley calls reciprocal tariffs "calamitous" to IT Hardware makers given nearly all such hardware products sold into the U.S. are now subject to 25%-54% import tariffs, including Apple (AAPL) iPhones. Apple, Cricut (CRCT), Dell (DELL), Garmin (GRMN), GoPro (GPRO), HP Inc. (HPQ), Logitech (LOGI) and Sonos (SONO) all rely on extensive international manufacturing, with the large majority of finished goods sold into the U.S. assembled in South East Asian nations, making them worst positioned, the analyst tells investors.
For Apple, the firm estimates the added tariff cost could amount to over
$33B annualized, or 26% of FY25 EBIT. For Dell and HP, the added tariff cost could equate to nearly the entirety of their expected net income in 2025, the analyst added. Among the group, companies such as IBM (IBM), Teradata (TDC), NCR Voyix (VYX), Ingram Micro (INGM) and CDW (CDW) could be more insulated from reciprocal tariffs given little direct manufacturing exposure, though all may face second-order effects from slowing growth, the analyst says.
