Thank you to our Lord and Savior... TACO!!!! iPhone prices and everything else is about to go up bigly. Grab your butts, it's going to be a wild ride.
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iPhone 17 Models 'Likely' to Have Higher Prices, Another Analyst Says
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tariff talk raises costs/prices to be higher than they otherwise would be. Unfortunately you miss the point, tariff talk makes the markets fluctuate. Should you happen to know what the next tariff conversation will be, for example if you’re the one leading it, it isn’t difficult to make very large, very low risk gains from such fluctuations.
You are absolutely dreaming if you think that the iPhone regular is going to go down in price.
Prices in the US may have not increased in recent years but that’s not the case in the UK.
Hopefully it’s just a £50 increase on the pro max and not £100. That would make a 256gb Max £1,299.
Hopefully it’s just a £50 increase on the pro max and not £100. That would make a 256gb Max £1,299.
Saying "Someone trying to balance out trade and bring jobs and manufacturing back to the USA is a good thing" is absurdly simplistic. The kinds of words pols headline to con people with. Of course "...trying to balance out trade and bring jobs and manufacturing back to [insert nation of choice here] is a good thing.."
The problem is that (whether simply blathered by some POTUS like Trump or even actually implemented) tariffs do NOT "balance out trade and bring jobs and manufacturing back." That is simply feel-good hyperbole from a con man that happens to be POTUS.
Please, go take an economics class at your local community college. Learn why trade is good for all, why tariffs are hugely inefficient and why bringing jobs and manufacturing back is not simplistically solved by tariffs.
Also look back at even high-school-level history and similarly see how trade has been good and tariffs have been bad for thousands of years. Recognizing that USA K-12 education is third-world-level competence, you may want to seek out a local community college for history coursework too.
Well thought out usage of very limited tariffs can be useful for very specific, limited national security goals. However no one could suggest that what Trump has been doing has even remotely either been well thought out or limited. Trump has simply been blathering about poorly thought out tariffs indiscriminately around the world.
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Trump has been funding Israel’s genocide in Gaza, and Tim Cook decides to reward Trump with a gold gift. Imagine the head of an American company in the 1940s during the Holocaust rewarding Hitler with a gold gift. History would not look back on that favorably. Cook is morally bankrupt.
Again, the initial launch price of the 14 Pro was much higher than the 15 Pro because there was huge inflation in 2022, they decreased prices later on in the cycle. However, the introduction price increase of the entire iPhone 14 lineup was much higher than actual inflation, so it was partly Apple just taking extra profit hiding it under the "inflation" umbrella.
Price differences between United States and Europe rarely match the exchange rate, they're usually much more expensive. Products also become more expensive much faster than in the United States. The iPhone example in my previous message was actually a bad example because they've done it much faster with other stuff like upgrade costs like cellular models over wifi models or accessories.
Your last paragraph is simply wrong, you only see this phenomenon with Apple products. We don't have this issue with other brands, so easy to blame it on the EU. Apple has been doing this in Europe for more than 20 years. They always present themselves as holding on to the same old price for products in their presentations, only because they only show USD prices in those.
It’s an Apple thing. I can’t think of another company that does it, most even deviate on £€ that Apple doesn’t.
You’re confidently incorrect. Apple price adjustments can be directly tracked to the currency exchange rate. At the time, a Euro was worth less 15% than it was today. At the time of the 14 Pro, for the first time since the Euro was adapted, €1 actually became worth less than $1.
Yes, there’s always a premium because of the VAT. Yes, there’s also a small premium to carry fluctuations in exchange rate.
No, Apple did not temporarily increase Euro prices because of inflation. It can be directly tracked to how much a Euro is worth (or how worthless a Euro is, depending on your world view).
Also… your last paragraph is straight up wrong. We do see this with other companies. We see it with Samsung. We see it with Sony. We see it with Alphabet. We see it with many others.
Currencies and the economy is not some game where you can just state random things and present them as fact. The value of the Euro has fallen. It’s on purpose. To increase exports.
Some companies eat the cost to remain competitive. Some don’t and adjust prices accordingly. Regardless of the choice made, there’s a cost. All non-Euro companies are impacted by this.
It’s also the reason why gas in Belgium and all other Euro countries increased even more in price than necessary in 2022: all energy on the international market is paid for in US dollars. So when prices shot up, the impact in Europe was extra big because the value of the Euro went down as well.
Also, I didn’t say it’s an EU thing. I indicated it’s a fiscal issue within the monetary union which is a very significant difference. ECB policy + government spending.
To finance investments in US manufacturing: https://www.investopedia.com/has-apple-cracked-the-code-on-how-to-avoid-more-trump-tariffs-11786638
Does anyone know what the historical price DROP is of the existing line of phones.. in this coming case it would be the iphone 16 series? My recollection was that is was only about $100, but now with the most likely nominal price increase of 50-100 for the new iphone 17 line of phones i wonder if they will drop prices much if at all on the current iphone 16 lineup?
Only asking as I know I’m NOT getting an iphone 17, want to get a couple iphone 16 (prefer the plus to the air for sure), and can still get an apple discount from a friend who is an employee (not sure if it’s 10 or 15%, or more) but I’d do it now to lock in style, color, size of storage vs. waiting for just like $50 in over a month.
Only asking as I know I’m NOT getting an iphone 17, want to get a couple iphone 16 (prefer the plus to the air for sure), and can still get an apple discount from a friend who is an employee (not sure if it’s 10 or 15%, or more) but I’d do it now to lock in style, color, size of storage vs. waiting for just like $50 in over a month.
As for iPhones and other devices, apple did bring in billions $$’s of iPhones quickly before any tariffs increase back in April and probably more in May..as well, anything that was on the water as tariffs were announced, carried only the tariff impact that was in place at the time the item shipped (and according to some reports at the time the bill of lading was input into the CBP system, which could have been several weeks before any sailing)..
As for costs prior to last Friday and now going forward, the tariff is a % tax on the ASSESSED import price of the item.. for an iphone it’s probably less than HALF of what any retail price is. So, for a $799 iphone, the tariff would be on a maximum of $398..even a 30% tariff (or 25% before Friday on Indian imports) would be about $100-120 overall, something apple could certainly shoulder in short order.
The other thing most ppl don’t realize is that the import price can and often IS broken out from the incorporated parts, and not just the completed manufacture value leaving the last port before entry into the USA. So, all the parts, chips from Taiwan, Switzerland, Korean, Japan, battery from Japan maybe, screen from the USA or Scandinavia, etc, the value of EACH part gets assessed from the bill of materials, some have ZERO tariffs, some 10%, some more. Overall that can bring down the assessed import value, and thus the tariffs.
If for example SEMICONDUCTORS are going to come in tariff free, for companies that are building factories here, producing here or PLANNING to build factories here, all those values would come in as ZERO tariff, even if the finished product left a Chinese factory.
So, it’s very confusing and overall not nearly as dire at the RETAIL level as is made out (a 30% tariff on a $1000 phone doesn’t yield a new $1300 price for them phone), although for many retailers it IS going to be quite costly and damaging to business.
Common knowledge, I know, but ...
UK & EU prices include VAT which for most customers is equivalent to a national sales tax: what you see is what you pay. US prices await the addition of a local sales tax hike for most customers and that varies: you don't know until you get to the till.
That obviously can frustrate comparisons.
btw, for commercial customers, including the self-employed, VAT can be offset against the VAT they charge (& collect for the Government).
The standard VAT rate in the UK is 20%; it varies across EU countries, between 17% & 27%.
It now seems that the US tariffs are introducing a national sales tax on selective products.
Edit: Probably should add
1. The VAT the seller (ie Apple or its retailer) collects that VAT but can offset what it must hand over with the VAT it has (already) paid on its non-employee inputs. I'm assuming that the seller in the US can't do that kind of thing with the local sales tax it must collect and pay over.
2. The variable impact of exchange rates is on Apple with its practice of charging the same in UKP is as declared in the US in dollars.
UK & EU prices include VAT which for most customers is equivalent to a national sales tax: what you see is what you pay. US prices await the addition of a local sales tax hike for most customers and that varies: you don't know until you get to the till.
That obviously can frustrate comparisons.
btw, for commercial customers, including the self-employed, VAT can be offset against the VAT they charge (& collect for the Government).
The standard VAT rate in the UK is 20%; it varies across EU countries, between 17% & 27%.
It now seems that the US tariffs are introducing a national sales tax on selective products.
Edit: Probably should add
1. The VAT the seller (ie Apple or its retailer) collects that VAT but can offset what it must hand over with the VAT it has (already) paid on its non-employee inputs. I'm assuming that the seller in the US can't do that kind of thing with the local sales tax it must collect and pay over.
2. The variable impact of exchange rates is on Apple with its practice of charging the same in UKP is as declared in the US in dollars.
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Unfortunately you're right. I expect they'll also raise the prices across all countries in line with the price rises in the US.
Why? because it's a convenient excuse that they'll get away with. As opposed to "we're raising prices because F U", and they'll get away with it because people are too locked in to vote with their wallet.
Ontop of that; i'd expect that even once the tariffs are removed; they'll keep the price hikes; citing increased costs to doing business; aka "dividends are going up"
Righting wrongs and bringing jobs back to the USA is a smart move too bad your leaders are more consumed about suppressing freedom of speech. This is why America is #1 and your country not so much.
So advocating Tim Cook to lie is your answer
To claim that imposing tariffs and thus making imports more expensive will have no effect on bringing jobs back is ignoring basic economics. Somehow almost all countries imposed tariffs on the USA and we are to ignore that occurred. Moreover, growing the US manufacturing base to be more high tech is also a very good thing especially for workers that have been displaced over the last 20 years. Bringing some of the jobs back should be a positive in anyone’s book.
Apple has not increased prices
There are more important things in this country than keeping your iPhone at the same price it was 8 years ago. Inflation over that time, primarily driven by the inflation administration aka Dementia Joe, is up 31% which is much higher than anything Apple will propose.
Probably because they haven't released the 17 series yet, which is what this article is about.
These tariffs just support inefficient American businesses (example raw steel producers) earlier this year Cleveland cliffs in Pennsylvania was closing down factories. Then Trump hit Canada with a 50% tariff in raw steel, this allowed American steel producers to increase their prices just below 50%, cause that's still cheaper than the competition (you can see the cost of a ton of American steel from 1 year ago and today went up)
But you’re ignoring the fact that moving jobs to the US isn’t simple, isn’t cheap and doesn’t happen overnight. Couple that with the fact that US labour costs are higher than in the far east and also the required skill set in some fields (chip fabrication for example) just isn’t there and tariffs become a nonsense.