Apple Absorbs Tariff Costs While Electronics Prices Surge, But How Long Will It Last?

[raylo32]

I kind of get that, too, but on a macro level it just doesn't make sense for many or most countries to literally have cradle to grave manufacturing of everything within their borders. And the duplication of those capabilities to that scale would be terribly inefficient overall. Our current system has been evolving for decades and becoming more and more efficient. One might quibble on the exact mix and what exactly really SHOULD be reshored. But Trump's carpet bomb of tariffs makes no sense.

I understand why many countries/people want to bring back a manufacturing capacity but I just don’t know what’s the best way to do it, strategically.

 

[Fuzzball84]

I kind of get that, too, but on a macro level it just doesn't make sense for many or most countries to literally have cradle to grave manufacturing of everything within their borders. And the duplication of those capabilites to that scale would be terribly inefficient overall.

Yeah, it doesn’t make sense.

The only case where it makes sense is for areas concerning national security. Ie manufacturing resources and capacity that would be critical during a time of war.

 

[CarlJ]

As Amazon seems to intend to in the us

Sounded like they were planning on it and then Bezos got an angry call from Trump, and now Amazon is saying "oh no, we never meant it like that."

 

[xmonkey]

Do you have a source that backs up your claim that no one outside of the United States likes him?

Indeed, fascists and bigots all over the world do like him, not just the ones in the US.

 

[Bryan Bowler]

Indeed, fascists and bigots all over the world do like him, not just the ones in the US.

It’s interesting to me that a certain subset of the population claims that anyone with a different view from them is automatically labeled a bigot or a fascist, or in some cases they are even labeled as a rascist. Yet, isn’t that behavior an example of what you’re proclaiming?

 

[Nuno Lopes]

Where are those people that not long ago were were all the rage about the EU steeling from American companies with its regulations and taxes?

Silent!

The way I see it the reason why Asia has been getting all manufacturing deals from Big Tech companies was down to cheaper labor, lack of work regulations, close fitting natural resources and government investment.

I believe that China salaries will rise so will work regulations (people can’t just eat rice forever). So that incentive would be naturally mitigated.
I believe that the natural resources constraints could be mitigated.

The crux of the matter is that the US Gov cannot match governamental investment of China, it has “no money”. Pair this with share holders unwilling to invest on the matter. Which is natural: Why would one invest in something that is already done better elsewhere?

Share holders have no interest in creating jobs but maximizing profits. Such is an issue between the government and voters.

PS: Neither is Peter Thiel or Musk interested in creating American jobs or elsewhere, considering his solution to US manufacturing is robotics everywhere. He is just concerned that offshoring work in tense international climate makes supply chain costs extremely volatile … and he is not wrong. Look at it now.

 

[Dutch60]

It’s interesting to me that a certain subset of the population claims that anyone with a different view from them is automatically labeled a bigot or a fascist, or in some cases they are even labeled as a rascist. Yet, isn’t that behavior an example of what you’re proclaiming?

I don’t think so. Some simply do not understand the meaning of the word “fascist” and there are also enough people who do not care at all. Some are proud to be a fascist without realizing the implications.
Telling the truth is a refreshing idea in times ruled by lies.
And then exposing fascists and/or bigots when it’s obvious, should be seen as an act of patriotism in a democracy.
Too bad, some stay in denial, even when all the signs are there. We’ve seen that before, a long time ago and it didn’t work out very positive.

 

[Bryan Bowler]

I don’t think so. Some simply do not understand the meaning of the word “fascist” and there are also enough people who do not care at all. Some are proud to be a fascist without realizing the implications.
Telling the truth is a refreshing idea in times ruled by lies.
And then exposing fascists and/or bigots when it’s obvious, should be seen as an act of patriotism in a democracy.
Too bad, some stay in denial, even when all the signs are there. We’ve seen that before, a long time ago and it didn’t work out very positive.

Thank you for your response. I appreciate reading others viewpoints, especially when they are presented with a broader view and an attempt to make a point. I strive to learn about other people’s views, better understand where they are coming from, and that helps to formulate my own ideas and values as I continue to move forward in life. I just took some time to research what the term fascist means and developed a deeper understanding of its meaning. I now better understand what it means.

Yes, there are people out there that are far right and that is certainly not my view or desire. I am a registered Replubican that is more of what most would consider a centralist. While this is not the place or even the point of your reply above, my values are more aligned with traditional Replubican values. Admittedly, what turns me off the most are those, on either side of the political spectrum, that are so entrenched in their stance they are no longer capable of listening and giving reasoned thought. That is not a good place to be.

My point to the other poster (and others) was this: while it’s okay and perfectly normal to have your own beliefs, do not let yourself get into a position of automatically grouping others into a particular box based on their broader beliefs. By all means, formulate an opinion based off a person’s actions…but don’t go down the slippery slope of automatically grouping people otherwise. Sadly, there is a lot of that going on nowadays and it’s more decisive than productive.

 

[Earendil]

Apple’s average profit margin for the last quarter was 47%. They have plenty of room to absorb the tariffs and keep prices the same by lowering their profit margins.

My average household profit has no bearing on whether I should pay for something that brings me no value, right? If Apple had a product that was costing them more than gaining them, I would expect them (even if I love the product) to axe it.

I honestly don’t understand the take that Apple should lose money on a product simply because they have money to lose.

If you want non-profit altruism, look to a democracy, not a capitalistic corp.

 

[Earendil]

It’s interesting to me that a certain subset of the population claims that anyone with a different view from them is automatically labeled a bigot or a fascist, or in some cases they are even labeled as a rascist. Yet, isn’t that behavior an example of what you’re proclaiming?

Being intolerant of bigots or fascists does not make one a bigot or fascist. Conversely, being tolerant of them doesn’t make you one automatically either.

Intolerances in each category to get you started:
Example 1: WWII
Example 2: Hate Crimes.

That said, for me personally, you can only show up to the klan meetings “for the cookies and socializing” so many times before I cut you out of my life. I will not tolerate that from people I let close to me or my family. I can wish you well and not associate with you.

 

[Dutch60]

Thank you for your response. I appreciate reading others viewpoints, especially when they are presented with a broader view and an attempt to make a point. I strive to learn about other people’s views, better understand where they are coming from, and that helps to formulate my own ideas and values as I continue to move forward in life.

Same here.

I just took some time to research what the term fascist means and developed a deeper understanding of its meaning. I now better understand what it means.

Maybe you also see signs that can lead to fascism?

Yes, there are people out there that are far right and that is certainly not my view or desire. I am a registered Replubican that is more of what most would consider a centralist.

Where I live, “traditional” Republicans are seen as right wing.
Nothing wrong with being centralist. The point is, that I see too many Republicans move to the far right under the current Trump administration / MAGA movement. Can be fear, can be agreement, but in my opinion certainly not the centralists as you say Republicans are seen.

While this is not the place or even the point of your reply above, my values are more aligned with traditional Replubican values.

Like you say…traditional Republican values. I now see too many Republicans go down the slippery road of approving fascist behavior and propaganda. Even staying silent means agreeing.
Don’t you notice this?

Admittedly, what turns me off the most are those, on either side of the political spectrum, that are so entrenched in their stance they are no longer capable of listening and giving reasoned thought. That is not a good place to be.

My point to the other poster (and others) was this: while it’s okay and perfectly normal to have your own beliefs, do not let yourself get into a position of automatically grouping others into a particular box based on their broader beliefs. By all means, formulate an opinion based off a person’s actions…but don’t go down the slippery slope of automatically grouping people otherwise.

Agree, but it doesn’t depend solely on actions. Ventilating ideas and words matter! And they matter a lot!


Thnxs for your response. What’s you idea about Trump/ MAGA movement?

 

[wikiverse]

There is only one country in the world that is not tariffed: Russia

This is not correct. Cuba, Belarus and North Korea also don't have Tariffs applied. Because they are already under sanctions.

 

[ducknalddon]

These companies relish higher prices and profits. Prices only ever go up over time, never come down long term. They won't drop them in any relevant form.

The latest MacBook Air came down in price whilst getting an increase in RAM.

 

[wbeasley]

Indeed, fascists and bigots all over the world do like him, not just the ones in the US.

Canada and Australia both had elections.

Both seemed to have the shadow of Trump hanging over them.

Both countries rejected the party most aligned to Trump...

 

[wbeasley]

Same here.

Maybe you also see signs that can lead to fascism?

Where I live, “traditional” Republicans are seen as right wing.
Nothing wrong with being centralist. The point is, that I see too many Republicans move to the far right under the current Trump administration / MAGA movement. Can be fear, can be agreement, but in my opinion certainly not the centralists as you say Republicans are seen.

Like you say…traditional Republican values. I now see too many Republicans go down the slippery road of approving fascist behavior and propaganda. Even staying silent means agreeing.
Don’t you notice this?

Agree, but it doesn’t depend solely on actions. Ventilating ideas and words matter! And they matter a lot!

Sadly, there is a lot of that going on nowadays and it’s more decisive than productive.

Thnxs for your response. What’s you idea about Trump/ MAGA movement?

For decades after WWII we wondered how people could have stayed silent over what was happening in the lead up to war.

Now we know.

Silence = Death (as they said during the AIDS early days)

 

[Dutch60]

For decades after WWII we wondered how people could have stayed silent over what was happening in the lead up to war.

Now we know.

Silence = Death (as they said during the AIDS early days)

Agree! I also think, that many people who live in democracies take democracy for granted, because 1. most don’t know anything else, and 2. (maybe therefore) apathetic laziness and lethargic indifference.
I wonder how long silence will last now. History has shown that it’s not improbable that silence will break when it’s too late.

 

[Nuno Lopes]

Do you have a source that backs up your claim with that no one outside of the United States likes him?

I disagree that no one likes him outside the US. Putin, Netanyahu … In Europe seams to have become a model to nationalist ideologies (far right).

 

[Dutch60]

I disagree that no one likes him outside the US. Putin, Netanyahu … In Europe seams to have become a model to nationalist ideologies (far right).

Agree…and thus extra important to be aware, speak out and protest massively.

 

[Dutch60]

By all means, formulate an opinion based off a person’s actions…but don’t go down the slippery slope of automatically grouping people otherwise. Sadly, there is a lot of that going on nowadays and it’s more decisive than productive.

Afterthought:
I consider NOT protesting against Trump and his MAGA fans, is acting in itself. Acting by staying silent and agreeing with what he says and does. That’s exactly what current Republicans seem to do right now. I don’t see any reason not to “grouping Republicans” at the moment.
I like to see and read otherwise ofcourse.

 

[BelgianChoklit]

Those who voted for Trump should absorb the tariffs, those who did not have nothing to do with this garbage.

I wish it were that easy...

 

[attila]

Not buying any Apple hardware for at least 4 years. Maybe longer or if the stuff broke and have to replace it. Upgrades no longer worth it with Timmy supporting Trump and his 1 mil payment to the convicted felon and adjudicated rapist.

As much as I find it disappointing (and amusing at the same time) that US voted in a demented orange as leader, Tim Cook donated to the inauguration, not the Trump campaign. There's a slight difference there.

 

[0049190]

My average household profit has no bearing on whether I should pay for something that brings me no value, right? If Apple had a product that was costing them more than gaining them, I would expect them (even if I love the product) to axe it.

I honestly don’t understand the take that Apple should lose money on a product simply because they have money to lose.

If you want non-profit altruism, look to a democracy, not a capitalistic corp.

Nobody is suggesting they lose money. They have a 47% profit margin. They can easily afford to reduce that and still make big profits.

Some Apple fans must be the only people on the planet who want to pay MORE for their electronics.

 

[0049190]

He's not my idiot president. I'm from the UK and fully expecting to have to subsidise US consumers when I buy my next Apple product.

Well you shouldn’t expect that. We should NOT have to subsidise US consumers. They should take the hit and think twice next time they vote.

 

[It’s always something]

This is not correct. Cuba, Belarus and North Korea also don't have Tariffs applied. Because they are already under sanctions.

Thank you for the correction.

 

[Nuno Lopes]

I expect it to end once Xi Jinping is forced out of power. Xi is trying to be another Mao Zedong and many in the Chinese Communist Party and People's Liberation Army are turning against him. Once Xi leaves the scene politically, there will be a deal and tensions will quickly ratchet down with a lot more stable economy.

You make it look like it was Xi who started rising the tariffs.

It’s nonsense to think that Xi is trying to be Mao. Not even close. That is the regular run of the mill fear mongering.

The problem is bigger than you think. We are dealing with a super power economy with “no foreign dept” and comparatively reduced import dependencies. China seams to be mostly self sufficient. There is little US or the EU can do to pressure China economically without backfiring.