iPhone Sales Could Face Major Setback in China if Trump Enacts Trade War

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Nov 14, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    A collection of companies based in the United States could face "impaired" blowback if President-elect Donald Trump follows through with his campaign plan of imposing a 45 percent tariff on imports from China, as well as considering China "a currency manipulator." According to Chinese newspaper Global Times, these actions will not only negatively affect China's reputation, but "the trade atmosphere between China and the US will become more tense" (via The Guardian).

    In retaliation for the potential trade war, Global Times said that China "will take a tit-for-tat approach," and singled out the airline, automobile, and smartphone industries as some of the first potential targets of the tense relationship between the two countries if Trump decides to commit to his trade plan. Specifically, in regards to Apple and the iPhone, the newspaper said that China will cut iPhone sales in the country and subsequently the device "will suffer a setback" if all of this goes through.

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    Despite the potential for such a disruption, Global Sun thinks there's a possibility that the 45 percent tariff on Chinese imports could have simply been outlandish "campaign rhetoric" and won't be put into action during Trump's presidency. The newspaper ends noting that "the new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences" if such a trade war does begin.

    For Apple, the company has been consistently bolstering its presence in China, most recently announcing a new R&D center in Shenzhen to attract software developers. This year, China lost ground to Europe as Apple's third most profitable market, but Tim Cook remains steadily "optimistic" about Apple's presence in China, saying that "China is not as weak as has been talked about. We may not have the wind at our backs that we once did, but it's more stable than the common view of it."

    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: iPhone Sales Could Face Major Setback in China if Trump Enacts Trade War
     
  2. JaySoul macrumors 68020

    JaySoul

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    I've called most of what has happened correctly.

    Can't see this one. File under "backpedal".
     
  3. Sunny1990, Nov 14, 2016
    Last edited: Nov 14, 2016
  4. samcraig macrumors P6

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    #4
    It won't be 45 percent. That's Trump's "starting offer" - he ran his campaign stating that everything is negotiable.

    On the flip slide, this was a general concern for many - that Trump would hurt our foreign relationships. Time will tell..
     
  5. DrewDaHilp1, Nov 14, 2016
    Last edited: Nov 14, 2016

    DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    #5
    Apple has reaped the benefits of cheap Chinese labor since the early 00's. Now the chickens are coming home to roost.
     
  6. Mac Fly (film) macrumors 65816

    Mac Fly (film)

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  7. mozumder macrumors 6502a

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    #7
    Trump really hates American exceptionalism, and is bringing us back into an 1800's economy.

    Good job middle-America. You couldn't get what you wanted, so NO ONE should get what they want.
     
  8. cogitodexter macrumors regular

    cogitodexter

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    #8
    I hear Canada is a good place to relocate to. If Trump really does proceed down such a reckless path, perhaps Apple (amongst other hi-tech companies) should consider relocating to Vancouver or Toronto?
     
  9. Sunday Ironfoot macrumors regular

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    #9
    Wouldn't this effect any electronic devices manufactured in China (which is pretty much ALL of them) not just iPhones?
     
  10. mozumder macrumors 6502a

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    #10
    You reaped the benefits of the Chinese labor market.

    Everyone in America reaped the benefits of the Chinese labor market, because free-trade agreements keeps inflation down.

    The Chinese labor market is the reason your prices are so low, in everything.

    Right now, the people that are going to be harmed most by the impending trade war are going to be the poor and the retirees, who are now going to pay double for the things they buy at Wal-Mart.
     
  11. Plutonius macrumors 603

    Plutonius

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    How can you call it a win win situation with the level of trade unbalance ?
     
  12. needfx, Nov 14, 2016
    Last edited: Nov 14, 2016

    needfx macrumors 68040

    needfx

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    Who decided to skip the current gen iphone for the next one?

    1 upvote = 2nd thoughts
    1 downvote = 10 prayers
     
  13. DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    What was it Obama said? "Under my plan energy prices are going to necessarily skyrocket."
     
  14. RiddlaBronc macrumors 6502a

    RiddlaBronc

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  15. mozumder macrumors 6502a

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    #15
    Apple's profit margins will remain the same, since they will just raise the prices.
     
  16. nt5672 macrumors 65816

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    #16
    Did you even directly listen to one Trump event (not media reporting about the event), even one, you would know that he does not hate American exceptionalism. Now there may be many things that Trump will screw up, but at least not as much as Hillary, and it won't be America's exceptionalism.

    The haters have come out of the woodwork. Why is it that when liberals win everybody should just get along and hating is bad, but when they lose, its ok again to hate, hate, hate? Liberal have to be the most closed minded haters.
     
  17. DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    Something about sitting in the back.

     
  18. Oblivious.Robot macrumors 6502a

    Oblivious.Robot

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    #18
    Even if China wanted to retaliate, wouldn't they be hurting their own manufacturing sector?
    Companies would move out to India, Brazil etc..

    Is it bluff, or am I missing something?
     
  19. michaelsviews macrumors 65816

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    #19
    Apple will never take a loss, they'll be fine. In regards to not upgrading iPhone model, not everyone get's a new Apple product when ever there's a new one available.

    Trump is Trump and since there is "Reported trouble with in his bubble" we can only speculate whats really going to happen when he is in office.
    --- Post Merged, Nov 14, 2016 ---
    Liberal eh
     
  20. craig1410 macrumors 65816

    craig1410

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    #20
    They could relocate their HQ to Ireland and kill two birds with one stone! No more complaints of tax evasion AND no more restrictions on trade with China or anyone else Trump thinks are unworthy...
     
  21. barkomatic macrumors 68040

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    #21
    We definitely need to bring back a significant amount of manufacturing to the U.S. but I think that's a long term and complex project. A knee jerk reaction, like a trade war, would make smartphones about $2K each.
     
  22. DrewDaHilp1 macrumors 6502a

    DrewDaHilp1

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    Moving their HQ to Ireland does nothing in regards to an American import tax.
     
  23. mozumder macrumors 6502a

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    #23
    Were you trying to make a point, or were you just interested in crying?

    Like I said, we're turning back on American exceptionalism, because of protectionists policies.

    Free trade is always better than tariffs.

    Did you thank NAFTA for keeping your prices low over the last 20 years?
     
  24. Rocketman macrumors 603

    Rocketman

    #24
    This is definitely PRSI because the headline and the premise is a disproven Democrat talking point!

    Trump has stated and clarified many times that during trade NEGOTIATIONS tariffs are ON THE TABLE to encourage WIN-WIN outcomes more so than the ONE WAY outcomes we have now.

    It was the policy of President Bill Clinton to enact GLOBALIZATION in order to export middle class lifestyles to communist and war ravaged countries like China, Vietnam, South Korea and others. It worked. It was never turned off or ramped down, and it resulted in WHOLESALE exportation of our manufacturing base to those countries and others like Mexico.

    Now to be fair those countries are now more civil, less warlike, and more interconnected with the world. Yes.

    However the cost to our domestic economy was two decades of wage stagnation and a long decline in GDP growth and money velocity. Check my links.

    Trump (and the vast number of partners he is building) simply wants to stop the bleeding. It really is that simple.
     
  25. CaTOAGU macrumors 6502

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    #25
    This exactly. There are definitely problems that have arisen out of globalisation, people have been left behind but the answer to them isn't to embrace nationalism, it's to demand honesty in our elected officials and to work more closely with our neighbours.
     

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