Apple analyst Ming-Chi Kuo believes that any tariffs implemented by the US won’t impact Apple’s pricing because of supply chain moves implemented by Apple CEO Tim Cook, and because of that pre-planning, there won’t be any impact to Apple’s shipments.
Kuo believes that Apple has pre-prepared for the event given guidance by Cook, and should the 10% tariffs be supplied “Apple will absorb most of the additional costs due to tariffs, and the prices of hardware products and shipment forecasts for the U.S. market will remain unchanged.”
There would be a negative impact on profits should Apple shoulder the cost increases, according to Kuo. He also believes that some of the impact will be mitigated over time by Apple’s shift to non-Chinese production sources, such as expansion in India, or production in Vietnam.
MacDailyNews Take: Obviously, profit margins would take a hit, but that’s one of many benefits of Apple having such healthy margins.