Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?

[Aoligei]

Actually, while you are correct, manufacturing is starting to become quite expensive in China as labor costs have been skyrocketing. Perhaps the struggling Chinese economy might buy manufacturers some time, but they know that diversifying away from China is a must. Vietnam, India, Brazil (lesser extent), Indonesia, etc. will benefit from that. Hell, even Turkey will get a piece.

I think Chinese government knows and they are preparing for it. China is also going for high-end, high value added products and is pushing hard for servicing industry.

The point is that a country will go through high growth, low end manufacturing to jump start its economy, eventually it will go for high-end, high value added products. Currently, there are only two countries that able to do this, United States and China.

The advantage for China is that China has 1.4B people to consume, the market is big enough to allow full supply chain to grow. Chinese companies is able to access such large market, which allows them to invest and grow. Something can't be said to Vietnam, Indonesia.

The problem of India, it is they are very inefficient and their basic infrastructures are very poor. They have large amount of people uneducated and their electricity grid is very weak.

 

[Arran]

One solution for Apple would be to stockpile the iPhone 17 in countries with a lower import tax (say the UK) for later sale in the US.

Why not stockpile the 17s on Penguin Island? The penguins could guard the product while it 'improves' there.

Worked for Ballantine's Whisky with geese: https://scotchwhisky.com/magazine/whisky-heroes/26782/scotch-watch-the-ballantine-s-geese/

And who doesn't love a penguin?

 

[Unami]

Don't do Apple the honour and buy something now because it might become (even) more expensive in the future. They tried to bribe Trump by giving money for his inauguration, good old kleptocracy-style, and now they should be rewarded for that corruption?

I just paid for a Macbook Air with upgraded RAM and SSD at 10x the prices of the free market - they should either eat the losses (in this case - less gains) inflicted by the president they are brownnosing or people will buy elsewhere.

 

[Unami]

Isn't the tariff added to the manufacturing price at the which Apple imports the phones to US from China, before Apple adds their profit margin? I think it's misleading to calculate the tariff on top of current sales prices.

This. 43% tariff will probably only mean $200 more on a pro max

 

[arkitect]

Those penguins have been ripping us off for way too long... Very bad penguins, really bad...

 

[victorvictoria]

Rushing to buy something you can live without because the price is going to go up is a fool's game. And it's just the dance the people who called the tune want you to dance to. That way, the (short term) surge in sales will give them some good news to justify their terrible economic policies!

 

[Aoligei]

Don't do Apple the honour and buy something now because it might become (even) more expensive in the future. They tried to bribe Trump by giving money for his inauguration, good old kleptocracy-style, and now they should be rewarded for that corruption?

I just paid for a Macbook Air with upgraded RAM and SSD at 10x the prices of the free market - they should either eat the losses (in this case - less gains) inflicted by the president they are brownnosing or people will buy elsewhere.

I am taking my M1 MacBook Air and iPhone 14 Pro Max to China this August, SSD upgrade is super cheap in China. Screw Apple for the ridiculous high SSD price.

 

[icerabbit]

Apple already charges a premium in the EU to subsidise Americans. The market won't accept more.

I, for one, would move not buy any more Apple products if they try to absolutely gouge us in order to keep US prices down. I suspect there are a significant number of people like me.

Subsidizing?

The price difference is due to currency exchange and Sales Tax excluded versus Value Added Tax included.

Hopefully you understand that in the US products are listed for sale without sales tax ( which is addded at checkout ), and in Europe all products are for sale with VAT included. Electronics carry a 20-25% tax because electronics are a luxury.

That is how with an even exchange rate, a product will be listed for 100 USD, but effectively 105-108-110 out the door. ( with two or three exceptions, a few states have no sales tax ). While in EU countries it will be listed at 120-125 Euros, typically.

And, so, yes some people who travel abroad would buy phones, tablets, cameras, lenses, ... on their trip to the US, to the buy retail at the lesser tax rate, or in a few states avoid sales tax altogether ... which is significant when we're talking about anything from 1k to 2,5k etc purchases. There is a very busy shopping area in the corner of a state, a few hours from my location ... super busy all the time, most cars typically are out of state, to go shopping tax free.

 

[turbineseaplane]

Rushing to buy something you can live without because the price is going to go up is a fool's game. And it's just the dance the people who called the tune want you to dance to. That way, the (short term) surge in sales will give them some good news to justify their terrible economic policies!

To be fair, there could be someone who was planning to make a purchase in the next 3-6 months anyhow, and it'd be smart of them to accelerate that purchase rather than wait.

 

[Orange Bat]

My guess is that Apple saw this coming and has stocked up on enough iPhones to get them to the next fall release. I don’t think we’ll see any increase on prices from Apple for a good while. They’ll absorb the costs and get by for now.

 

[Col4bin]

As horrible as Apple's software has been lately, if they have the gall to raise prices I'll just keep what I have all the while longer. They've been selling the same iPhone for like 6 years now, maybe they'll actually innovate again to justify the higher prices. Making bigger camera bumps and bigger notches obviously won't get me to upgrade.

Tim Cook Apple ladies and gentlemen. Profits before innovation.

 

[ThatGuyInLa]

I just purchased my Mac Studio. I also purchased a standby household generator. I was going to be getting these two pricey items over the next year or so. However I have been motivated strongly to acquire them today.

 

[icerabbit]

Yes, if you were planning to upgrade, for your own wallet, it may be best to go ahead and buy it now.

I'm somewhat debating about M4 stuff, but my M1 with 32&16GB of RAM does what I need just fine. Phone and tablet are recent. So, sadly as somebody with vested interest in Apple, I don't see myself buying ... and I fear the same will be for countless people ... as this economy and usa gets tanked by one man, his cronies and their news media backers.

Anyway.

I see that one of my neighbors looks to have just purchased a new pickup truck, even though his other truck was perfectly fine, most likely before the prices jump up 10-15-...% ? If you can afford it ... now he doesn't have to worry about higher prices or repairs for the next four or more years.

 

[turbineseaplane]

My guess is that Apple saw this coming and has stocked up on enough iPhones to get them to the next fall release. I don’t think we’ll see any increase on prices from Apple for a good while. They’ll absorb the costs and get by for now.

Enough of what? The 16 generation?

That's going to be less and less appealing, especially by Fall

 

[Arran]

Rushing to buy something you can live without because the price is going to go up is a fool's game. And it's just the dance the people who called the tune want you to dance to. That way, the (short term) surge in sales will give them some good news to justify their terrible economic policies!

Not sure I agree. I’m grabbing a 16 today.

I was waiting for the 17, but there’s no way I’m putting an extra $500+ in Trump’s pocket in October. Tariffs are a tax on the American consumer. Simple as that. And while I’m OK paying my fair share of taxes to keep the country and government running efficiently, this ship of fools can’t be trusted, IMHO.

I might swing by Costco on the way home and stockpile toilet paper. Going to need it for the coming s**t show.

 

[MPclk2006]

An iPhone will become a status symbol for the absolute richest. I'm sure it won't be a problem for the US president and his friends. An iPhone 16e already costs $800, an iPhone 16 costs around $950 in Denmark where I live. I won't pay more than that.

I've been happy with Apple products, and especially their ecosystem. But if the prices rise to unreasonable amounts, then I'll just put my money on Samsung, they make some pretty good premium products after all.

Apple prices are already unreasonable for a lot of their products. And going Samsung doesn't seem like a great alternative as their prices can also be high.

 

[citysnaps]

The tariffs only apply to products shipped IN to the United States.

I hope Apple don't try to gouge the rest of the world by increasing prices everywhere else.

And that would include a good portion of the roughly 600,000 (on the average) iPhones manufactured in China and shipped into the United States every day, every day of the year.

 

[Expos of 1969]

I just purchased my Mac Studio. I also purchased a standby household generator. I was going to be getting these two pricey items over the next year or so. However I have been motivated strongly to acquire them today.

Wise to get that generator now in the event Canada stops exporting electricity to the US. In 2023 it was to the tune of $2.3 billion.

 

[Darren.h]

and the mastermind behind all these tariffs went golfing yesterday and said the weak will fail.

I SAY REVENGE.

My Uncle Jack owned a Print shop in Chicago where I lived and Printed all the Posters for Chicago's Ministry.
I went to Alan Jorgensen's Birthday Parties. Now he lives in LA.

 

[Digital Dude]

Nope, not falling for that one…🙄

 

[XboxEvolved]

I hate this mfer so much like I guess f me I don't need to get the iPhone Pro Max like I planned to this year. Guess I'll use an 11 forever. If only that one guy wasn't a plant by Trump to make him look good...need a real one.

 

[Mescagnus]

What's the difference? One time you have to add, the other time you have to multiply. Both results are always incompatible for Apple and the consumer.

From another thread, a calculation (with new 34% tariff):

Rough math, since the 16 Pro has a ~46% profit margin, that means it costs ~$540 to Apple. China tariffs are now at 34%, so 540*1.34=723.6, and 723-540=$183.

If everything is passed onto consumers, the base Pro will now be $183 higher.

As opposed to $999*1.34 = $1338.6, which would be $339.6 higher.

EDITS: adjusted calculations

 

[bluecoast]

It’s worth thinking about how a big part of Apple’s success is getting people in countries with lower wages, lower employment rights and longer working hours than the USA to make their hardware for them.

And Trump’s tariffs are disrupting this.

It seems that, thst Apple will do anything to avoid making their products in the USA.

I’m not American and have owned apple products since 2003… I’m just pointing out ‘an inconvenient truth’ that we all - me included - tend to forget about with all the ‘designed in California’ marketing campaigns.

 

[ThomasJL]

I feel no sympathy for Apple customers who voted for Trump if they are harmed by steep price increases on Apple products. Those Trump-supporting Apple customers didn't care that Trump's fascist policies would harm, and even kill, so many people both in the U.S. and abroad, so they deserve no sympathy. Let them reap what they have sown.

 

[j26]

From another thread, a calculation:

Rough math, since the 16 Pro has a 46% profit margin, that means it costs ~$540 to Apple. China tariffs are now at 54%, so 540*1.54=831.6, and 831-540=$291

If everything is passed onto consumers, the base Pro will now be $291 higher.

Tariffs are based on declared value, not cost, so it will probably be higher than that. It's unlikely that they would get away with declaring a value of 540 for an item that retails for 1000.