Earlier this week, Apple suspended sales of its hardware in Russia, due to the war Russia started with Ukraine. While no one has said they think Apple did the wrong thing, Apple watchers may wonder what the move will cost the company’s bottom line. Not an amount worth worrying about, according to Wedbush analyst Daniel Ives. Apple 3.0 ran part of a note he wrote. The way he sees it:
…the exposure to large tech stalwarts such as FAANG names and the software/chip ecosystem is a rounding error relative to the global footprint with our estimates that if the US tech world pulled the plug on Russia it would have a 1%-2% revenue impact in a worst case scenario.
If you’re wondering where he stands on Apple’s move. He likes it, it seems, and he’d like to see more. Quoting his note again:
With Apple’s move this week to ban the sales of its products in Russia we expect more tech stalwarts to head down the same path and pull the plug on Russia over the coming weeks given the horrific atrocities seen coming out of Ukraine.
Even if Apple does lose money, Ives thinks money will understand. After addressing the worst-case-scenario loss of 1% to 2%, Ives says, “This is a move the Street would gladly applaud given the heartbreaking Ukraine invasion by Russia that is playing out in front of the world’s eyes.”
Ives has an “Outperform” rating on Apple shares, a price target of $200, and a heart.
