Gene Munster: It’s unlikely Apple wearables will be tariffed without an offset

Gene Munster for Loup Ventures:

On September 1st U.S. collections of a 15% tariff will begin on $125 billion of targeted goods (smartwatches, bluetooth headphones, flat-panel televisions, and many types of footwear) from China. While Apple’s wearables segment is within the targeted tranche, we believe there’s a low probability that tariffs are levied against Apple wearables starting September 1st and an even lower probability of that without an offset…

We believe the US does not want to be the first to add tariffs to Apple, given Apple is arguably the leading US Company and the face of American business in China. The optics of a US protectionist first approach penalizing a US global leading company while China doesn’t penalize Apple would seem to surrender the moral high ground.

If Apple wearables are tariffed by 15% for the next year, and Apple bears the cost, FY20 earnings would likely decline from about $12.80 to $12.70.

MacDailyNews Take: We’ll see where things stand if December 15th arrives before any deal and iPhone faces tariffs.


  1. President dumb shit is getting raked over the coals by the much smarter and tougher Chinese. There won’t be a “deal” by Dec 15th. Not that President bankrupt 6 times would have a clue how to make one anyway.

  2. If Apple alone receives special tariff exemptions while smaller companies without a cash pile in the Cayman Islands bear the full brunt of Trump’s cronyism, a very important question will be asked:

    Does Timmy really suck Trump’s little weeny better than Stormy and the string of imported wives?

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