How Apple Could Navigate Trump's Tariffs, According to Gurman

[SmugMaverick]

If apple raise prices elsewhere to ease the hike for Americans, ill drop apple like a hot turd.

Maybe Tim shouldn't have sucked up to a 4 times failed businessman and thrown money at him.

Vote for a clown, get a circus.

 

[0049190]

These tariffs only apply to hardware sales in the US which account for about 30% of Apple’s total revenue so it’s bad but could be worse.

 

[Burger Thing]

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.

Exactly my thoughts as well. My guess would be people close to the inner circle of the Trump family.

 

[transmaster]

If apple raise prices elsewhere to ease the hike for Americans, ill drop apple like a hot turd.

Maybe Tim shouldn't have sucked up to a 4 times failed businessman and thrown money at him.

Vote for a clown, get a circus.

There is a $300 Dollar alternative........running to hide........................🙀

 

[0049190]

There is a $300 Dollar alternative........running to hide........................🙀

View attachment 2500138

Does it run on hot air?

 

[Velli]

And then again, by the end of the month, the tariffs situation could be resolved. We just don't know.

Apple has enough money to take a “wait and see” approach. Not everyone has that luxury. But I would not expect Apple to react particularly quickly to this, for that exact reason: Apple hates changes, especially price changes. I do not expect Apple to do anything before WWDC.

 

[Martin81]

It will be interesting to see what Apple does when sales go down. Maybe not everybody wants an American product any more. It seems to me that the shelves with peanut butter and whiskey are pretty full here in Germany. Tesla deliveries are declining in Germany for 18 months now while overall BEV sales are up.

It is obvious that Mr. Trump does not understand how tariffs work and is not man enough to admit any mistake.
This is truly America's Brexit: people voted against their own economic benefit.

 

[Velli]

No way Apple will lower the margins. Their stock already took a 33% hit at the time of me writing this. How low do you want them to be? Half what they used to be just a few months ago?

Apple will put their margin exactly where it under the given circumstances results in the maximum overall profit. If they make (relatively) more money by lowering margin, they will. If they make more by raising margin, they will. Just like any other company. No reasonably run company runs with a fixed target for margin.

 

[0049190]

Apple has enough money to take a “wait and see” approach. Not everyone has that luxury. But I would not expect Apple to react particularly quickly to this, for that exact reason: Apple hates changes, especially price changes. I do not expect Apple to do anything before WWDC.

I would imagine Apple are shipping and stockpiling as many units as they can before the China tariffs start on 9 April.

 

[dlopan]

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.

Vietnam is 95%. Move all electronics back to the US.

 

[Velli]

I would imagine Apple are shipping and stockpiling as many units as they can before the China tariffs start on 9 April.

You don’t just shift from sea to air freight in three days at this scale. They will of course shift whatever they can, because money is money, but it won’t be significant enough to affect their pricing decisions.

The ONLY way I could see Apple react quickly, and this is highly unlikely, would be to make some sort of political statement, for long term gain. But Cook has already proven that this is not how Apple wants to deal with Trump. They will weather the storm, and see how the landscape looks afterwards.

 

[Expos of 1969]

Apple will put their margin exactly where it under the given circumstances results in the maximum overall profit. If they make (relatively) more money by lowering margin, they will. If they make more by raising margin, they will. Just like any other company. No reasonably run company runs with a fixed target for margin.

You may be right but some posters on here who seem to know quite a bit about Apple, have long said that Apple seems to operate with a 32% margin. Perhaps @citysnaps could comment.

 

[Heelpir8]

Vietnam is 95%.

No it's not.

 

[jz0309]

Gurman chiming in …
Tuning out of this discussion

 

[hagar]

I don't see the issue. Advertise the iPhone at 999 dollars plus 200 dollars Trump Tax. Then people see Apple didn't increase the price, and who they can blame for the additional fees. win-win.

 

[Piplodocus]

Usually when the EU do something that mildly hurt Apple, whether it's for good or bad, I always see people on these forums post the dumb idea they should just pull out the EU and stop selling stuff there and loose that massive market that makes up a large chunk of their profit.

So, just for the sake of balance on this forum: if the US are gonna be asshats, why don't Apple just pull out of selling stuff in the US... 🤣

 

[Velli]

Freaking out over nothing. All of these countries are already running in begging to negotiate. This was the plan all along. Push for tariffs so other countries agree to drop their tariffs on US goods.

Except at the same time Trump wants to use these tariffs, that he is supposedly willing to negotiate, to pay the bills. Can’t have your cake and eat it too.

The best way to manage this is to stop searching for logic where there is none. There is no grand master plan, only stupidity.

The sad thing is that if everyone opposed to him would actually stand together and say no, he would be out of office next week. But, because each individual entity is acting on their own short-term self interest, they won’t, because for most companies and countries the most profitable approach is to suck it up. China seems to have decided to stand up to him however, and I will praise them for it, assuming they don’t fold tomorrow (which I don’t expect them to).

 

[Velli]

Vietnam is 95%. Move all electronics back to the US.

95% what?

 

[Velli]

You may be right but some posters on here who seem to know quite a bit about Apple, have long said that Apple seems to operate with a 32% margin. Perhaps @citysnaps could comment.

They can’t both “operate with a 32% margin” and also overcharge on upgrades (RAM, SSD) like everyone seems to agree that they do. So I’d be curious to learn more about that claim. IIRC, they have averaged more than that several times in the past, for individual segments.

 

[Velli]

I don't see the issue. Advertise the iPhone at 999 dollars plus 200 dollars Trump Tax. Then people see Apple didn't increase the price, and who they can blame for the additional fees. win-win.

That doesn’t mean people will pay for it.

 

[victorvictoria]

And then again, by the end of the month, the tariffs situation could be resolved. We just don't know.

And that uncertainty is what has wiped $6 Trillion, with a capital T, in value from the U.S. stock market. And 20% from your IRA or 410K. Hope you don't need it now!

 

[victorvictoria]

You know what to do? Take Warren Buffet's advice (you know, the Oracle of Omaha): "Be greedy when everyone is panicking, and panic when everyone is greedy." Don't buy an iPhone now trying to beat a price hike. Or a car, TV or anything you don't really need right now. Buy Apple stock instead. The gains will pay for a new car over the next 10 years.

 

[sputnikv]

anything but shift SOME of the manufacturing to the usa

 

[Velli]

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?

Trump: "Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate! They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs.”

Except, tariffs are not the reason Japan isn’t buying your cars. Until last week, the tariff on cars was 2.5% both ways. The reason US don’t sell cars in Japan is…. (Drumroll) because your cars are ******. Which deal exactly do you imagine Trump can make, that makes Japanese car buyers buy a Buick over a Toyota?

 

[It’s always something]

Trump: "Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate! They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs.”

Except, tariffs are not the reason Japan isn’t buying your cars. Until last week, the tariff on cars was 2.5% both ways. The reason US don’t sell cars in Japan is…. (Drumroll) because your cars are ******. Which deal exactly do you imagine Trump can make, that makes Japanese car buyers buy a Buick over a Toyota?

On top of the quality problems, American cars are probably much larger than the Japanese markets want. Not everyone is drunk on giant land yachts the way that Americans are.