Please identify a few of these massive foreign tariffs for us. For example, Vietnam’s tariffs average 9.4%. Does that constitute “massive”? Is the President’s 46% tariff on them even vaguely proportionate to it?
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Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?
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You expect Apple to sell you something at a loss? If their costs go up because the US is taxing us, why shouldn’t Apple’s selling point go up? Sure, I’d like that too, but that’s not capitalism.
I’m trying to imagine my state’s sales tax going up and expecting businesses not to change prices…
What are you even talking about? You’re welcome to think a feature isn’t worth the price, after all that’s a personal equation. But if you think an iPhone X is like an iPhone 17, then I *have* to assume you’re trolling.
Higher prices? The prices have remained *shockingly* consistent *without* accounting for inflation. Account for it, and suddenly iPhones are *less expensive* than they were 7 years ago.
I say shocking, because plenty of other companies raised prices by 25% and blamed it on inflation that was half as much.
Take the iPhone X, which was the only model, started at $999 in 2017. Adjusted that’d be $1,300.44!
And the current models?
$599, $799, and $999.
If you only consider the Pro, and have no idea what inflation is, the best you can say is they cost *the exact same*.
Meanwhile basically nothing else costs what it did in 2017, *unless* you account for inflation.
And that’s fine.
See how things trended down under biden before Trump was in? See how there was a jump when he started?
Your data aint showing what you think it’s showing
No good reason? If it costs Apple more, it’d be exceedingly stupid to sell it at a loss.
Yes, tariffs are going to cause the sale of ANYTHING imported to go down. And in most cases even things “manufactured” in the US are made from imported parts.
It’s downright shocking to me that anyone thinks factories (and the employees!) can be spun up in a few years, let alone a few weeks. Y’all better convince your kids to be factory workers, or do it yourself.
It's almost like what you're claiming, outside of a some very specific isolated examples on individual goods that are nothing like the massive across-the-board tariffs Trump is imposing on whole countries, isn't true..
What exactly does this mean? What "balance of the economy", and how will massive import taxes on almost every US trading partner, improve things for the US economy? Explain it.
Here are the cuts I could find in just 30 seconds, with citations:
Trump administration fires staff of program that helps low-income households pay for heat
The Department of Agriculture has slashed over $1 billion in funding aimed at helping schools and food banks purchase from local farmers, according to a nonprofit.
Trump’s administration announced it would freeze federal grants — the primary funding for the early education program that serves more than half a million low-income children.
As far as inflation, Trump hasn’t done *anything* in the last 73 days to lower inflation, so I’m pretty sure we can thank a past president (you can even say it was Trump in his first term, but it clearly isn’t this term).
Personally, I think the reduction has more to do with the bipartisan Inflation Reduction Act, and The Fed raising the interest rate.
As an aside, I swear back in my day trolls put in more effort. Maybe that’s the rose-tinted glasses of time working their magic?
Upgraded a 2020 iPhone SE tonight, and the Pro 15 and Pro 15 Max to equivalent 16 versions. I normally wait 18 months, but I don't want to look back and say I should have done it sooner.
No big issue for Mini 12/13 users.
Just replace the battery for 60 bucks and away we go again.
Just replace the battery for 60 bucks and away we go again.
But if you look at it from a manufacturing perspective:
Firstly you've got to ask if it hits saes? Did anyone not buy the phone because it didn't have the earpods or charger.
If the answer is 'No' then they are a cost on profit.
They sold roughly 230 million phones last year worldwide.
I have no idea how much it costs to make the earpods and charger and put them in the box, but for sake of argument let's say $15. That doesn't sound excessive
So that's roughly $3.5Bn extra profit just on that one decision they can plough into something else.
Even if it is only a $2 decision that's still $460million profit saved in one year.
Then they would lose sales, especially if other makers outside the US were seriously cheaper. I suggest that Apple temporarily moves from Cupertino to Canada.
Why would Apple voluntarily make their devices significantly more expensive and less competitive in the UK, when the US price increases will be specifically as a result of import taxes only levied in the US?
While your first point is correct, I'm not sure if you're kidding about the second one. If not, aside from how that wouldn't be easy to do, it would also make zero difference to the import taxes the US is levying, as they are based on where the device is manufactured, not where it was originally designed.
Yes. U.S. consumers will be able to afford less and buy less.
The country will therefore import less - and that’ll fix the trade balance.
The tariffs are a tax which the UK is not subject to. The pre-tax price hasn't changed for either country. Why should the UK, or any other country pay a US tax in sympathy/solidarity with the US?
It is asinine to assume that other countries should pay the same "just because". If Samsung/OnePlus/Honor/Microsoft/Dell etc don't increase their prices (because they don't have to) then Apple would be at a serious disadvantage if it did, and could be almost wiped out around the rest of the world. It could easily lose half of its global sales.
They are an American company so if as what is getting claimed then they will not just increase the prices on America only that is why according to reports based on calculations then it would be a dramatic increase in prices for the USA but they are not going to do that so by raising the price slightly worldwide then it’s ultimately not going to be that much
I'm not paying extra because of the stupidity of your government.
This isn't how anything works, and has nothing to do with tariffs.
- While it's not the core problem with what you're arguing, your numbers are wrong. The UK price includes 20% VAT (sales tax), the US price does not. The UK price without VAT is £999.17, which is currently equivalent to $1,286, $87 more than the US price without sales taxes.
- Apple's local pricing is based on a combination of factors, but it's generally about maintaining healthy profit margins and sales/market share, while contending with currency differences, local economic differences, local cost of operations, taxes etc. It isn't based on trying to just make the amount in each currency the same regardless. Though sure, with currencies that aren't massively apart, they don't mind doing so sometimes, especially if it means they can charge a bit more, like in the UK.
- Having to pay massive import taxes (tariffs) in the US will massively increase the cost of an iPhone sold there, the estimates are around a 43% increase. It makes sense they would increase US prices to cover that, but it doesn't make any sense to think they will also increase the prices of their devices in other countries to the same level when they don't have to pay the same massive import taxes there.
Sure, it would cause their margins to increase in countries other than the US if they did so, but their sales would also drop massively when an iPhone suddenly costs around £400 more than it did before, especially because there's no reason to think their competitors would do the same thing. And that's even before we talk about how international consumers would be incredibly angry at them for blatantly and massively increasing prices when they don't need to.
What are you talking about? The US is the biggest economy in the world, often at the expense of many other countries. Africa has been plundered. But now you're going to cry? This is beyond absurd.
Especially as nobody forced US companies to offshore their production. And nobody forces US customers to purchase non-US goods. That's all on you.
The hatred towards the US is skyrocketing right now. Countries need allies. And you better be sure that this will lead to many new partnerships and trade deal agreements without the US.
Imagine you are right (which is a hypothetical for a reason). Please explain why Trump did not put those tariffs on his board, instead of trade deficits.
Is it?
Apple’s Hardware has been about 10% (but very rarely more) more expensive in Europe than in the U.S. (pre-tax, at time of release). Often a bit less on high-end configurations, if I’m not mistaken. For a long, long time.
Example today:
16 Pro Max:
🇺🇸 $1199 + local taxes
🇬🇧 £999 + local taxes (20% VAT) = £1199
£999 being approximately $1284 at today’s rate - about 7% more expensive in the U.K.
PS: sorry @hop already did that above (somehow didn’t notice).
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It would make sense to increase them less in the U.S. than they would need to offset the tariffs - and compensate for that lost margin by increasing prices abroad. They’ll avoid even steeper increases and maintain affordability in the U.S. - and foreign pricing wouldn’t look “on par” to oblivious foreign buyers elsewhere.
If they can get away with “hiding” that and obfuscate the “true price” and amount of tariffs to buyers elsewhere.
👉 That’s why “we” - and the media - need to make sure Apple will be called out about it if they try (subsidising tariff-affected U.S. sales from sales elsewhere).
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Why would an American company make their product that much dearer than in the UK
The price of iPhones in the USA before individual taxes are paid is the exact same price as in the UK
Apple as a company is not going to increase the price drastically their & not lift the price in the UK
That is why I believe they will go up by 100 for every new iPhone if what is to be expected by price increases