Apple Warns of Potential Tariff Impact in SEC Filing

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Aug 1, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    In its quarterly filing with the Securities and Exchange Commission (SEC), Apple this afternoon warned investors about the impact U.S. tariffs on Chinese goods could have on the company.

    As Bloomberg points out, the document contains wording suggesting tariffs and other protectionist measures could "adversely affect" Apple's business, resulting in lower gross margin or products that are more expensive for consumers.
    It is common for Apple's quarterly 10-Q filings to mention how the company might be impacted by political events, but prior documents have not specifically referenced trade disputes.

    During yesterday's earnings call, Apple CEO Tim Cook elaborated on how trade disputes might affect the company. Cook said that of the three tariffs put in place on steel, aluminum, and $50B worth of additional goods from China, none impact Apple's products directly.

    A fourth tariff on $200 billion in Chinese goods is up for public comment, and Cook said Apple is evaluating this tariff and will share details at a later date.

    The original Apple Watch has been named in this latest proposal, alongside devices that include the Fitbit Charge and some Sonos speakers. Apple has already discontinued its original Apple Watch and newer Apple Watch models are not included.

    Cook says that Apple does not think tariffs are the right approach to improving trade agreements and the company is planning to share its views with the Trump administration.

    He also said that he was "optimistic" the tariff issue will get sorted out, and that Apple is hoping "calm heads prevail."

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Apple Warns of Potential Tariff Impact in SEC Filing
     
  2. Asarien macrumors 6502

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  3. DBZmusicboy01 macrumors 6502a

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    #3
    Simply Pure Apple Greed
    Almost A TRILLION dollars and they are worried about making 2% less each year in profit while still getting RICHER everyday. While being worth over a trillion dollars.
    It’s like complaining about making a penny less per hour.
     
  4. BlazednSleepy macrumors 6502a

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  5. rafark macrumors 6502a

    rafark

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    maga.
     
  6. mariusignorello macrumors 65816

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    #6
    It’s called running a business. I can tell you’ve never done it.
    Did you do the math on that 2%? We’re not talking about pennies here...
     
  7. Amacfa macrumors 65816

    Amacfa

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    #7
    Why are instigators like this allowed to post here? Clean this up mods!
     
  8. mabhatter macrumors 6502a

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    #8
    To be fair the White House is passing out 25% tariffs like parking tickets at university. While they just begged Congress to drop harsh sanctions for a competing devices company that broke sanctions on terrorist states.

    The White House is just spiteful enough to suddenly decide Apple’s imported electronics need a tariff because they seem to pick on rich people in their way.. like all the noise about Bezos/Amazon. Pretty much all the various WH staff have some bone to pick with Apple or the people it employs.

    A 25% tariff would be +$200 or more per iPhone. That would make an iPhone 8+ $1100. Or $1400 for an X. It would definitely knock a few $100B off Apple’s market cap overnight. Apple can eat part of that, but the profits fund iOS and services development projects to add features to the iPhones later.

    Imagine if Apple felt the need to drop a few Billion$ in campaign donations to get people voted out because this is threatening their cash money. The money spent in the last Presidential election isn’t even a rounding error to THIS QUARTER and things like tariffs threaten $100’s B.
     
  9. Populism macrumors regular

    Populism

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    #9
    Things that can and do co-exist:

    Trump is a hypocritical conservative.
    Cook is a lying liberal.

    Shhh. Don’t tell the binary thinkers.
     
  10. k1121j macrumors 6502a

    k1121j

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    #10
    Not apple greed its the job of the company to inform its investors... duh
     
  11. IPPlanMan macrumors regular

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    #11
    This is what fighting back against a trade abuser and a currency manipulator looks like. I don’t know why this surprises anyone here, but this is what happens when a presidential administration has decided that it won’t put up with this kind of anti-competitive behavior from another country. This isn’t something you saw during the last administration because it decided it was better for the American worker to be screwed over than to have a trade dispute. These tariffs will go away when China decides to play by the rules.
     
  12. statik13 macrumors regular

    statik13

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    #12
    Care to flesh out your theory a bit more? What exactly are these anti-competitive behaviors and currency manipulation practices that Canada, Brazil, South Korea, Mexico, Turkey, Japan and Taiwan have participated in? Those were the first salvo of Trump's tariffs. Don't forget he also attacked the EU with threats of tariffs too. Oh, and the NAFTA agreement.

    At this point, China is an afterthought.

    Were all prior administrations so horrible that every single trade deal made was utter junk? Or is this simply a case of Trump and his ego not wanting any major deal around unless he made it himself.

    Then again, I'm happy to see he has made a few exceptions to the tariffs, so maybe there is hope after all. :oops:
     
  13. Superhai macrumors 6502

    Superhai

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    #13
    I don’t think a warning and complaining means the same.
    Anyway stock-holding companies are generally required by law to file warnings when they reasonably should expect events that may affect the stock prices.
     
  14. HJM.NL macrumors 65816

    HJM.NL

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    Don’t give Tim Cook an idea to upgrade the prices again. He will exploit those tariffs by not allowing to be satisfied with less margins on the products but adding extra Apple tax for consumers to pay.

    Every company needs profits to secure its future but Apple is investing very little in R&D from those profits to really make stand out products again.

    Even Huawei is putting more R&D into their products and I can hear all isheep saying it is copying Apple. But the truth is the opposite.

    Where is that nimble, brave, hungry Apple from the past? It always was more expensive than the competition but at least their products were state of the art, what justified their higher prices, instead of the über priced antiques they sell today. Shame on you Tim Cook.
     
  15. Guda.FL macrumors regular

    Guda.FL

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    #15
    Hes right, political thought aside. China is well known globally for doing what they are acused of, there are plenty of journals such as the economist you can look up to understand the situation.

    And as an example, Canada does have a 240-290% tarrif on american dairy products from milk to butter as an example.

    All trump jokes aside, he is focused on american interests first. Despite opinions, i may not agree with each world leader will i hope be biased towards their national interests first. Wheather they are correct or not, i doubt with have any geo economists here that can through down some ideas as to how and why.
     
  16. GuruZac macrumors 6502

    GuruZac

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    #16
    Looking at current trade deals, you have to wonder who in the hell allowed America to be so lopsidedly screwed over? And why has it been allowed for so long? And now people are bitching and moaning about tariffs (and I'm not specifically targeting Apple here).
    Absolutely agree.
     
  17. justperry macrumors G3

    justperry

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    #17
    Why, because the person has an opinion, nothing wrong was said.

    Apple is right in doing so, it's a business, not only that, it affects all businesses and people in the states.
     
  18. GuruZac macrumors 6502

    GuruZac

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    #18
    Yes. And all lacked the political backbone to do a damn thing about it. Meanwhile, America's jobs have been shipped everywhere else.
    No. In defense of Trump, he has been on the record stating his total dissatisfaction with America's trade deals going back to the early 80s. He has absolutely been consistent with that, whether you like him or not as President.
    --- Post Merged, Aug 2, 2018 ---
    Yes, thank you Obama, and Bush 43, and Clinton, and Bush 41, and Reagan, etc etc etc for keeping trade deals in place that hurt America long term.
     
  19. npmacuser5 macrumors 65816

    npmacuser5

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    #19
    US Businesses behaving badly caused this entire problem. Seeking Hugh “Short Term” profits instead of investment in their US businesses. Additionally by buying political clout, businesses also Exasperated our immigration problems and the loss of jobs overseas buy seeking cheap labor. Their influence allowed the government to look the other way on our immigration laws for cheap labor and exporting factories “US Business built” in foreign countries. Apple a perfect example. The root of the problem, good old capitalism at its best. The failure, our political system to dependent on Money. Capitalism checks and balances fail when Money becomes the influencer. The costs of our elections alarming.

    The current Government solutions, give the people who created the problem, businesses more power. Good luck with that.
     
  20. Binarymix macrumors 65816

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    #20
    So will this increase prices for those outside of the US who don't have tariffs?

    Products are normally shipped directly from China, so I'd hope us Canadians don't get slapped with an even higher price tag.
     
  21. justperry macrumors G3

    justperry

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    #21
    Fixed.;)
     
  22. Binarymix macrumors 65816

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    #22
    Yeah, It's just that we get royally screwed already with the exchange difference, and tax.
     

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