I can buy an iPhone that is "made in India" but not one "made in USA". Can you explain this?
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15% Tariff Hitting AirPods, Apple Watch, HomePod and More in the U.S. This Sunday
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I can buy an iPhone that is "made in India" but not one "made in USA". Can you explain this?
I'll happily pay. I am glad we are finally standing up to this murderous regime.
Wow, a 25% tariff caused a 83% price increase ?
I did not vote for Trump, but it is not obvious to me that the United States will lose this "trade war". I do believe it will be good for the global economy and perhaps for global stability if other nations in Asia and beyond become more competitive in manufacturing.
Apparently a bunch of people on this thread are far more scared of spending a little more money on high tech disposables than willing to think in terms of a bigger picture. 15% more on AirPods ZOMG end of the world!!
Meanwhile for those requesting evidence that China will have impetus to bend (there are many, many more examples than these):
Tech Manufacturing Moving Out of China at Rapid Rate
Google is moving Pixel production from China to an old Nokia factory in Vietnam
Home Depot says suppliers are moving manufacturing out of China to avoid tariffs
Amazon is looking to move Kindle e-reader manufacturing out of China
New Hurdles Arise As Manufacturing Looks To Vietnam During U.S.-China Trade War
Nintendo moves some Switch production to Vietnam
Apparently a bunch of people on this thread are far more scared of spending a little more money on high tech disposables than willing to think in terms of a bigger picture. 15% more on AirPods ZOMG end of the world!!
Meanwhile for those requesting evidence that China will have impetus to bend (there are many, many more examples than these):
Tech Manufacturing Moving Out of China at Rapid Rate
Google is moving Pixel production from China to an old Nokia factory in Vietnam
Home Depot says suppliers are moving manufacturing out of China to avoid tariffs
Amazon is looking to move Kindle e-reader manufacturing out of China
New Hurdles Arise As Manufacturing Looks To Vietnam During U.S.-China Trade War
Nintendo moves some Switch production to Vietnam
You can't have it both ways. American middle class workers paid too much and they still can't afford made in USA products?
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A speck of sanity in a sea of lunacy.
Publicly traded company that is only focused on profits to please shareholders.
So the tariffs in India had nothing to do with it?
This can cause giant factories to move outside or China. Do you know how many employees Foxconn have for example? Over a million. There are TONS of potential lost jobs here. That’s way worse than 15% higher price for a watch, or 15% less profit margin for a company.
This is economy 101.
One thing those companies aren't doing...moving their factories to the US.
Everywhere else it is already charged as customs duty, excise duty etc....
Strange that Apple being taxed as an external entity in its home country!!
USA Government is actually seeing the opportunity to tax the rich by taking up tariff on iPhones which American people will lovingly pay (& they can't buy Huawei - Win - Win situation for Apple & the government) which rest of the globe doing on Apple products.
Keep funding China, or incentivise building jobs local. Decisions, decision.
Don’t worry, if Apple feels sales drop due to the Tarif, they will discount. The beauty of a free enterprise
Don’t worry, if Apple feels sales drop due to the Tarif, they will discount. The beauty of a free enterprise
I don’t know why you even bother. The US importing more goods than it exports simply means you get more than you are capable of providing for yourself and that the Us is attracting outside money that is spent in the US also isn’t a bad thing. Basically you spend more than you could naturally afford. Once the trade imbalance is taken care of (not that this will happen the way Trump goes about it) you’ll have less not more than before. So you should be glad not frustrated. The trade imbalance shows what a powerful consumer economy the US still is.
There is no short term solution (tariffs definitely not).
Investments in the US can reduce a trade imbalance. You need to make it attractive for businesses to produce in the US. That is difficult because offshore production is cheap and the US lacks skilled labour. Also it is difficult to motivate US workers to do the technically difficult and precise work of electronics assembly required at the low pay that the consumer expects. That is why phone produced in the US would cost a lot more.
What is needed are investments in infrastructure to increase local efficiency of production (logistics, energy, manufacturing capability). And a skilled workforce needs to be built. That requires better schools with more focused programs.
I have worked at the Huawei R&D Center in Shanghai as a consultant. Don’t fool yourself into thinking that there are unschooled drones working at the assembly lines there. A totally different picture of what I see in factories in Europe and the US.
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Yes and they will move to Vietnam or the Philippines. There is not one factory that will move to the US. Any company that does do it does it purely for PR like Foxconn did.
How does a 25% tariff on the wholesale price of a kids bike raise the retail price by 120%? If anything the price would be $120 at most. Probably more like $115.
It is amazing how stupid some Americans (and Brits - "leaders") applaud when some wreck their own country.
No company, even Apple can "handle a 50% tariff with the size of their margins".
That's a wet dream and gamer fantasy. I'm sure it hurts AAPL.
Americans can be glad that California still has strong and smart companies to invest in around the world.
Elect a clown - expect a circus.
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If I saw a 15% hike on already expensive Apple products where I live, I simply wouldn’t be buying them any more. I think Apple could be in big trouble if that increase was passed to other continents. America has created this though so I don’t have sympathy in their case.
Yes, in Europe the Apple prices have been out of control for a while. And the VAT is not the major reason.
You should travel there. You would marvel at their cities, trains, airports, hotels, shopping malls, etc. We started outsourcing manufacturing to China about 30-35 years ago. Back then, they lived in adobe huts and traveled on dirt roads in little wagons pulled by donkeys. Now they live in high rise condos and drive nice cars.
Where did they get the money to build up a modern country? The money came from here. What did they provide to us in exchange? Mostly subpar cheaply made crap. What happened to America in the past 30-35 years? Our cities and infrastructure have fallen in complete disrepair. We look like a third-world country compared to them. Our middle class shrunk while theirs expanded dramatically and now exceeds the size of our entire population.
How did that happen? We pumped trillions upon trillions of dollars into China paying for their cheaply made crap. They transformed themselves from a poor backwater country to an economic and technology superpower mostly by stealing our IP and shamelessly copying our products that we hired them to make for us.
Do you still fail to see how they have benefited and how we have been hurt by such trade policies? Going forward, we can’t even manufacture most of the stuff we need, while they can design and manufacture pretty much everything they need. We are losing to them due to our greed.
It might be a good thing if prices did increase here to be honest because upgrades are already in decline. It could wake Apple up a bit.
Who is standing up to China? Trumps own products are made there. He is only posturing like an aging peacock with no hope for success. The man cannot even stand up to his own miserable reflection in the mirror.
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So much rage, so little knowledge
Think about it. Not only your new iPhone is getting more expensive, but also your TV, underwear, pants, jacket, car (many parts are made in China), airconditioning, kitchenware, food (many processed food components are from China such as tomato concentrate, so Heinz ketchup will go up).
Overall cost of living in the US will increase. There is a recession on the way due to increased protectionism, so pay will go down, reducing spending and so the cycle goes on exacerbating the downturn.
As if China would say “well now that we have a list of demands guess we’ll just have to stop cheating you now”
Give me a break
To quote
Conan: "To crush your enemies, to see them driven before you, and to hear the lamentations of their women."
Conan: "To crush your enemies, to see them driven before you, and to hear the lamentations of their women."
You know...these tarrifs...why none for post production for film and television? Donald hates looney left coast Hollyweird. Why not hit the studios with tariffs for sending post production to Canada and other countries? Post Production is a huge portion of a films process. This is one tariff Americans HAVE been ASKING for. The work force has been decimated because of this. Instead we offer our tax dollars as incentives to match Canadas. ????? NO. TAX THE STUDIOS for post production not done here in the USA. This is a product we actually DO HAVE the people and facilities for.