Those people have done very well from the appreciation of Apple’s share price over the years. The current downturn might mean they get a bit less than before but anyone who has held Apple stock for more than a couple of years is still sitting on a healthy profit.
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How Apple Could Navigate Trump's Tariffs, According to Gurman
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One of my American friends is VERY concerned about the stock market tanking. He said that's the only retirement money he has since you guys don't have real pensions. I also have stocks and Apple shares too but I am not too concerned as I am not from the US.
I just may delay my purchase of the iPhone 16e I was planing to do in the spring to maybe fall, or maybe even don't buy it at all depending on the situation.If the US puts Tariffs on but everyone else stays where they are, the US iPhone prices would become more expensive than most of the world while Europeans for example should only see a minor or no increase whatsoever.
Apple could choose to reduce the US prices by charging everyone more for no reason of course but I'd imagine there would be a reduction in sales as a form of backlash.
Apple could choose to reduce the US prices by charging everyone more for no reason of course but I'd imagine there would be a reduction in sales as a form of backlash.
This just in: company considering all the obvious solutions to problem!
Wall Street guys should be calling today orange Monday, not black Monday.
Very correct for price increases as this is what the American people voted for. Price increases will be everywhere anyhow so Apple will just be indiscreetly running with a massive herd.
Apple will be fine, they have the resources to make things work at least until the economy itself collapses. The problem will be for all the small businesses that do not have those type of resources. They don't have the money to stockpile inventory or have inventory models that don't allow them to with custom products and are dependent on getting products that are not made here (and can't be). It is over for them.
Only 230 more to go!
Reality is we only need the big (China-Asian markets, and the EU) to negotiate. However, China looks like they are going to keep forcing Trumps hand. Since they know American's are hooked on the drugs they sell us cheap. And the EU can't stop VAT'ing our products to death. Trump wants them to pay for their own defense and NATO. Which is a good thing. But, also to not charge as much as they do on our imports. Which I doubt they will be able to do in a meaningful way. Not to mention their assault on our tech industry. He does have "some" good points.
The EU may just work with China more to get what they need, and ignore the US. Get oil and gas from Canada and Mexico. Spend more on defense. Wait out this administration and deal with the next one.
IMO, Trump only has another year and a half before the US kicks the conservative party out of office. Because our farmers can only take so much. And when the good union jobs dry up due to these tariffs on our neighboring countries. THEN people will say "Ahhhh, I didn't vote for this...". The markets dropping like a stone in water would normally be enough to force a POTUS's hand. But, the GOP is just stupidly loyal to this man. Like they didn't see the last movie he stared in.
It seems to me that a typical hardware profit margin of around 45% is wildly excessive.
Given its attitude to Governments "messing" with its business in other countries, i.e. withholding functionality or products from users and blaming it on the government, in the hope that unsatisfied users will put pressure on their governments to make exemptions to the law for Apple, I wouldn't be surprised if they put the prices up and blame it on the US Government...
Although given that it didn't work in Europe (they tried to imply that products couldn't be released in the EU because of "uncertainties" around regulations - uncertainties they could have cleared up in 5 minutes with a phone call), the users just moaned about Apple instead of moaning at the government, so they might absorb some of the cost.
But, also the bit about forcing other companies to lower their prices seems a bit unfair, especially considering Apple already put pressure on them so that the margins are already razor thin. "Lower your prices even more, because we don't want to affect our profit!" Apple is about the only one in the chain with enough margin on their products to absorb some of those tarifs...
Although given that it didn't work in Europe (they tried to imply that products couldn't be released in the EU because of "uncertainties" around regulations - uncertainties they could have cleared up in 5 minutes with a phone call), the users just moaned about Apple instead of moaning at the government, so they might absorb some of the cost.
But, also the bit about forcing other companies to lower their prices seems a bit unfair, especially considering Apple already put pressure on them so that the margins are already razor thin. "Lower your prices even more, because we don't want to affect our profit!" Apple is about the only one in the chain with enough margin on their products to absorb some of those tarifs...
Seems you have a misconception on what VAT actually is, I stopped reading after that part.
The price of everything is going up. There is no real coherent strategy here for long term benefit for the country or for the majority of the American people. Just watch government talking heads and journalists turning themselves into pretzels trying to explain this and make sense of it. They can’t because they can’t say the quiet part out loud.
This action is partly based on bogus economics—Trump getting very bad advice. Not the least surprising as he has surrounded himself with incompetents who’s only qualification is loyalty to him or align with his thinking. But it’s also very much Trump’s ego wanting everyone to kneel and kiss his ring. Legal firms, businesses, media outlets and more are cutting deals with the administration to stay on his good side—this is not the behaviour of a functioning democracy.
Apple isn’t the only one strategizing to find a way to weather this. I guess 500 million or billion wasn’t enough “kissing of the ring” for Trump’s liking.
A lot of the upthread suggestions are likely—Apple is going to try tempering the price increases through a variety of measures, which makes sense. But the price of electronics will end up taking a back seat to the cost of food, gas, rent, mortgage, car payments, student loans, toilet paper, heating bill and all the other mundanities of everyday life.
What is happening is more serious than many believe because they can’t really wrap their head around it. This isn’t a balloon bursting or some other mechanism that brought about past recessions and depressions. This was a totally artificial/arbitrary action based on zero justification.
The sad part is people voted for it because they didn’t really believe he would do what he said during his campaign. They thought it would be just a rerun of his previous term, but they didn’t count on there not being any adults in the room like the last time.
I like Apple products—not perfect, but pretty damn good. It’s sad, and frustrating, that this is happening because it didn’t have to happen.
Then again, maybe it did have to happen…
This action is partly based on bogus economics—Trump getting very bad advice. Not the least surprising as he has surrounded himself with incompetents who’s only qualification is loyalty to him or align with his thinking. But it’s also very much Trump’s ego wanting everyone to kneel and kiss his ring. Legal firms, businesses, media outlets and more are cutting deals with the administration to stay on his good side—this is not the behaviour of a functioning democracy.
Apple isn’t the only one strategizing to find a way to weather this. I guess 500 million or billion wasn’t enough “kissing of the ring” for Trump’s liking.
A lot of the upthread suggestions are likely—Apple is going to try tempering the price increases through a variety of measures, which makes sense. But the price of electronics will end up taking a back seat to the cost of food, gas, rent, mortgage, car payments, student loans, toilet paper, heating bill and all the other mundanities of everyday life.
What is happening is more serious than many believe because they can’t really wrap their head around it. This isn’t a balloon bursting or some other mechanism that brought about past recessions and depressions. This was a totally artificial/arbitrary action based on zero justification.
The sad part is people voted for it because they didn’t really believe he would do what he said during his campaign. They thought it would be just a rerun of his previous term, but they didn’t count on there not being any adults in the room like the last time.
I like Apple products—not perfect, but pretty damn good. It’s sad, and frustrating, that this is happening because it didn’t have to happen.
Then again, maybe it did have to happen…
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or they could, heaven forbid, dip into their 30 something % profit margins! oh, the horror! the left talks about grocery stores price gauging when they only have a 2% margin, but they never mention apple, google or microsoft. weird.
incorrect. this is exactly what we voted for. trump is doing exactly what he said he would do and always has. you are simply too short sighted to see the end game. just get out of the way and you will see in the end.
incorrect. this is exactly what we voted for. trump is doing exactly what he said he would do and always has. you are simply too short sighted to see the end game. just get out of the way and you will see in the end.
Tell us what the end game is, as you apparently know the best.
Yes, but then he will create another international situation because we can’t ever be happy.
Well, when you sanction penguins and not Russia, North Korea, or Belarus… It becomes a bit more clear. Balkanization of the US is right up there with outcomes.
Well TroyBoy30 knew Trump was going to sanction penguins, it's all part of the bigger picture, the end game he knows everything about. I'm anxiously waiting to be enlightened by him.
heaven forbid you do your own research. he's driving down markets to force the fed to lower interest rates so we can re finance our debt at a lower interest rate. most of these countries have already agreed to drop the tariffs on us. if tariffs are so bad why does every other country in the world impose them on us? why is it only bad when we do it?
the countries you listed are not subject to the Reciprocal Tariff Executive Order because they are already facing extremely high tariffs, and our previously imposed sanctions preclude any meaningful trade with these countries.
While this is a reasonable theory, doing my own research shows that it has been explicitly denied by National Economic Council Director Kevin Hassett.
In 2 years time there will be elections for the senate and the house. There will be a bloodbath for the Republican Party because of these decisions. If these tariffs have not been abandoned by then then they surely will. Of course there could be another outcome. Since he will never admit that it was all a big mistake. When the market falls far enough he will declare victory and get back to normal business without tariffs. Personally I would like to see the FCC investigate everyone in the inner circle for stock manipulation. Like who sold before the tariffs came in and who buys just before they are abandoned.
Excuse me...I didn't vote for them nor did almost half of Americans. I hate when they say "the American people voted for this", like it was sort of unanimous decision. I hope everyone that DID vote for it, feels it.
this is probably the most sane comment in this entire thread.