It’s not. It never was.
Comparing U.K. pricing has been in line with, first example Switzerland’s (also a European country, but only 8% VAT).
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Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?
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Comparing U.K. pricing has been in line with, first example Switzerland’s (also a European country, but only 8% VAT).
Because they, and all their competitors, have to pay a huge import tax in the US that they don't in the UK.
I literally went over how this isn't true at the start of the post you're replying to. Starting to wonder if you're just trolling.
You can keep asserting that, but you haven't explained why they wouldn't in this context, or how increasing prices by $100 will somehow deal with a $515 cost increase for them in the US.
Which, as an example, they’re already doing in Brazil:
The same 16 Pro Max is currently BRL 12499 retail in Brazil 🇧🇷. About US $2142 😲
I don’t know much about VAT / sales taxes in Brazil and I’m not even sure if they’re included in that price or not. But they surely aren’t 100% (but more like 28% from what I gather).
👉 The Brazilian price - even before individual taxes - is higher than the U.S. Apple’s products are not priced through same globally.
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Because in the USA the core price is $1.199 for the 16PM if they factor in the tariff price come September then that model would have to go up in price by over $250 in estimate that would mean that iPhone would be over 1,449 before taxes now as a company they won’t do that to their US customers
However if that cost is increased by 100 on every model worldwide then they are spreading that cost out so then it’s not that much of an increase
That’s why
In Switzerland it costs 1,249 for the 16PM
So my example is this if the price is increased in the USA by $100 dollars then the Swiss model would then go up to 1,349 & that is how US customers will not feel the full force of the tariffs on iPhones
Because they will have a core price set by Apple for the device & then taxes in every country then affects that price
But if they raise the core price of that product by $100 dollars then they will apply that throughout the whole world to every iPhone
When Apple was told (I think it was in Germany) with the introduction of the original iPad that it did not factor in a small fee levied on devices that could be used to copy and playback music, they passive-aggressively added that fee to their original price in a second column below the sales tax in their shopping cart system. They even made a badge on the shop website informing of that small fee.
I wonder if they are going to do the same with the Trump duties…
I wonder if they are going to do the same with the Trump duties…
Problem is that the impact won’t be felt until all the manufacturers have set up their production facilities in the US. That won’t happen before September.
Unless, the real impact intended, as someone else here already mentioned, is that the tariffs are an administrative scare to make companies negotiate with Trump individually (and they are, in fact a push for consolidation of power of the way the market operates, free markets anyone?)
$1,199 + 43% = $1,714.57. That's $515 more.
I don't think they want to, but they aren't the ones setting the tariffs.
Please show us the calculations which show that increasing the cost of every iPhone by $100 worldwide, will cover a $515 increase in tariffs per unit sold in the US.
apple as a company according to figures make double the amount in revenue worldwide than in the USA so if $100 dollars is slapped on every device then that makes up a lot of that additional tariff costs & they will probably absorb the small amount that is left over.
You have just done the calculation there is no way they will sell iPhones at that price in the USA & they will not absorb the full charge because then the money would fully come out of profits & that’s not going to happen
US companies should start printing the Trump tariff as a separate item beside the pre-tariff price. Just like they do with local and state taxes now. There’s nothing passive-aggressive about telling the truth. It holds government accountable to the people.
Tariffs are just another tax on consumers. The money goes in the federal government’s coffers. Lovely for those in power (more champagne! more golf!) but we the people are stuck with the bill.
I think everyone needs to calm down. These tariffs are only temporary and will lead to other countries reducing or eliminating their tariffs on our exports. This will be a good thing for us in the long run as we will, and already are, bring more manufacturing here to the US which helps us all. Shame on anyone fearmongering about this.
(Heavily) favoring exports over imports?
Seeking to gain territory (new colonies) by annexing Greenland and Canada?
Providing significant subsidies to exporters?
(Possibly) engaging in warfare to gain territory and resources?
Striving to make the U.S. as self-sufficient as possible by, effectively, creating a monopoly where only "Made in the U.S." goods are affordable for Americans, and imported goods are tariffed so heavily that next to no American can afford them, and help with financial aide to set up production facilities in the U.S., so that foreign (to the U.S.) businesses can't compete in the U.S. against U.S. businesses?
That's all mercantilism and protectionism.
I don't know the answers. But financially punishing any American business that wants to buy and import any part or resource from foreign nations seems like something that would impact U.S. innovation and total profits very negatively:
As the tariffed countries retaliate with their own tariffs that their businesses have to pay when importing from the U.S., it would seem very unlikely that foreign businesses would want to import the U.S.-made goods that the U.S. wants to export. Imports from the U.S. to foreign countries would surely go down drastically.
Take the E.U., as an example: Why would E.U. member countries not just make better deals with places like Canada, China, India, ASEAN nations, Latin America, within the E.U., and developing nations, and more, and then cut off the U.S. completely?
I don't immediately know anything those combined couldn't offer each other. I can't see what they would miss with the U.S. out of the picture(?). A few things, absolutely. But not a lot..?
But where would that leave the U.S.? Does it really have everything it needs to shut out the World? Would aggressive mercantilism and protectionism really make America great again, specifically wealthier and technologically more advanced and powerful (military, total territory, goods, resources, assets, education, etc.) than ever before?
Seeking to gain territory (new colonies) by annexing Greenland and Canada?
Providing significant subsidies to exporters?
(Possibly) engaging in warfare to gain territory and resources?
Striving to make the U.S. as self-sufficient as possible by, effectively, creating a monopoly where only "Made in the U.S." goods are affordable for Americans, and imported goods are tariffed so heavily that next to no American can afford them, and help with financial aide to set up production facilities in the U.S., so that foreign (to the U.S.) businesses can't compete in the U.S. against U.S. businesses?
That's all mercantilism and protectionism.
I don't know the answers. But financially punishing any American business that wants to buy and import any part or resource from foreign nations seems like something that would impact U.S. innovation and total profits very negatively:
As the tariffed countries retaliate with their own tariffs that their businesses have to pay when importing from the U.S., it would seem very unlikely that foreign businesses would want to import the U.S.-made goods that the U.S. wants to export. Imports from the U.S. to foreign countries would surely go down drastically.
Take the E.U., as an example: Why would E.U. member countries not just make better deals with places like Canada, China, India, ASEAN nations, Latin America, within the E.U., and developing nations, and more, and then cut off the U.S. completely?
I don't immediately know anything those combined couldn't offer each other. I can't see what they would miss with the U.S. out of the picture(?). A few things, absolutely. But not a lot..?
But where would that leave the U.S.? Does it really have everything it needs to shut out the World? Would aggressive mercantilism and protectionism really make America great again, specifically wealthier and technologically more advanced and powerful (military, total territory, goods, resources, assets, education, etc.) than ever before?
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I think you miss my last point which is that manufacturing in Canada would remove any tariff for Apple selling to the rest of the world. I don't know the balance of sales between the US and all other countries and my point assumes Canada welcomes Apple with open arms and does not apply tariffs themselves. From the UK, I'm not concerned about raised costs for US citizens - apparently it's what they voted for!
If you don't sense alarm on this then what should people be alarmed about?
Is Now the Time to Upgrade Apple Devices Before Tariffs Lead to Price Increases?
No. Now is the time to get over the FOMO and keep/enjoy whatever devices you already have that meet your needs. Personal fiscal restraint ain’t a bad thing.
Shame on anyone trying to hide what's going on.
If this is just a negotiating tactic, by having other countries lower their tariffs, no manufacturing will come back to the USA. It's either you want tariffs to stick, and manufacturing comes back many years from now, or it's just a horrible negotiating tactic.
Dr. Charles! You didn't 'save' any money. you "spent" money. The ability to parse the difference will inform you when you hear a politician yammer about government "investing" in anything. What they mean is "spending." think how much you'd have saved if you didn't buy the car at all. Especially if you get laid off due to a Great Recession. Or a Great Depression. You'll want that $50K back for sure!
Exactly! If you're not sure about your job security, keep your cash in your pocket. If you are sure, you're probably misguided.
Do you not potentially think that with these tariffs going on it’s a way to convince people to spend money now that they wouldn’t normally so then the American economy looks like it’s doing well
So then trump can then point & say look at how well my Economy is doing because more people are spending than usual?
If only.
That's going to last about a month. That's about 30 days and 23 hours more than Trump's attention span. His administration has already laid off about 75,000 federal workers. You think those people are going to rush out and buy cars and TV's with their severance packages? On unemployment that pays half or less than the salary that was barely enough to live paycheck to paycheck? Companies don't base their pricing on landed inventory. They base their prices on replacement inventory. Think about it, and you'll realize that if you aren't sure about your job, you're not going out to buy a new car or TV. Especially when you see your 401K lose 20% of its value in a week.
It might only last a month or so but that’s not how politicians speak
So he will say for example look at how well the economy is doing under me than the previous guy because it will show an increase in spending compared with previous months.
Then with the lay offs all they will say is look at the money we have saved for you America people.
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Ask North Korea how closing borders and shutting out the World is working for them.
Because a problem shared is a problem halved.
It is asinine until you realise that Apple isn't targetting the most price-sensitive part of the market. People have soaked up Apple's price hikes before with a shrug and carried on buying. Apple can't go crazy but a 10-20% uplift isn't out of the question. It might not manifest itself so visibly outside of the US market if the dollar takes a visible dip, which I don't think this administration would be averse to: cheaper exports, dearer imports and easing the burden on servicing the national debt.