Mark Gurman for Bloomberg News:
A 20-month trade war between the U.S. and China came to a head this week as a key deadline looms. This Sunday, 15% tariffs are due to kick in on the iPhone. Chinese officials expect U.S. President Donald Trump to delay the import duties, granting Apple a temporary reprieve. But negotiations have been fraught with missed deadlines and surprise about-faces.
Apple already is paying 30% duties on the Apple Watch, AirPods headphones, iMac desktop computer and HomePod speaker — and the company hasn’t raised prices to compensate.
If the company takes a similar approach with its more-popular products, the impact will be larger. The iPhone, iPad and Mac generate almost three quarters of Apple’s annual revenue… Holding prices steady while swallowing additional tariffs would cut earnings per share by about 4% next year, according to Wedbush Securities analyst Dan Ives… If Apple raises iPhone prices, demand would shrink 6% to 8% next year, Ives estimated… The other option is tariff waivers.
MacDailyNews Take: A “Phase 1” trade deal between the U.S. and China would likely take this 15% tariff threat off the table for good.
Sorry, but the childish side of me just sees Trump going in for a smootch and Cook not quite sure he’s at that point in the relationship yet. Childish I know but makes me laugh inside! 😝
They should smooch some more if it helps Tim to convince POTUS to delay that iPhone levy until after the holidays. Seriously, whatever it takes. Apple is always getting caught up in some damn drama.
A pretty “Stormy” point of view I think.
But you know… we know what they are, the difference is price.
Don’t do it Tim!!!!!
They have been spending a lot of time together…
That is quite the tax American companies and consumers must pay. It is the US not China paying for these tariffs.
There should be a levy on every product Apple manufactures or assembles in China, and Apple should be forced to “eat it” rather than passing it on to the consumer.
That’s the ONLY way you’ll get Apple to bring jobs home to the USA. So, Americans can afford their products.