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

[fooyork]

They will have to unless they think consumers will abide a ~30% increase in the price of their phone for no good reason other than Apple wants to continue building them in China.

The thing is, if they move production to the US this will first of all take years, cost billions and then the resulting consumer prices will remain higher as I don't think anyone in the US is likely to want to work making iPhones for $1.50 an hour. So, yeah, prices are going to go up for US consumers no matter what... on everything.

Well done, MAGA.

 

[Ctrlos]

Because he promised to make these companies more money
Hence the tariffs means price increases so then consumers pay more

But the tariffs go straight to the government as a form of tax.

The political party allegedly in favour of a small state, low tax government just put a 40% sales tax on consumer electronics. This additional government revenue will then be used to justify heavier tax cuts for the rich.

Once again the average citizen suffers.

 

[krspkbl]

Poor old Apple aren't worth $3T anymore. They'll definitely pass the cost on.

 

[Unami]

The MARKETS are going to BOOM..."

At the moment it rather looks like the markets are going BOOM...

Welcome to international pricing.

Fortunately Apple products don't take a detour through the US when they get from China to Europe, so I hope the already high prices here are going to remain stable.

 

[fooyork]

lol no. Apple isn’t going to do jack about iPhone pricing because consumers are already backing off on luxury purchases even before the word “tariff” was ever uttered.
Cook is a dial tone but he’s not stupid. If he touches the pricing he will see profits fall off a cliff.

Profits will fall off a cliff if they DON'T touch pricing. The shareholders are not going to stomach taking the cost on their own, Apple's board of directors will insist on price increases to maintain margin, and a return to the shareholders.

 

[krspkbl]

At the moment it rather looks like the markets are going BOOM...

Welcome to international pricing.

Fortunately Apple products don't take a detour through the US when they get from China to Europe, so I hope the already high prices here are going to remain stable.

It would be nice if that were the case but let's wait and see.

It's about time USA gets treated the way europe does on Apple products.

 

[Unami]

We're so ****ed. As you said with the Switch, who knows what it'll end up costing with the new tariffs? It might actually be cheaper for my co-worker in Ireland to buy me something and bring it with him on a work trip rather than me buying something here in the US.

Sure, smuggling is always an option against tariffs. That might not work with somehing bigger, though.

 

[marinersaptcomplex]

Is the tax on the MSRP or the cost of production? Because iPhones aren't $1000 devices, they're probably closer to $300 devices plus markup for R&D and profit. That gives Apple a lot of wiggle room, depending on how they want to adjust the price to handle the tariff - e.g. a blanket price bump that effects each middle man vs a line item like sales tax.

Apple’s stock hinges on its margins, cutting into that will lower Apple’s valuation. Tim is between a rock and a hard place.

 

[j26]

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.

 

[Steve686]

What could possibly go wrong when a six time bankrupt person determines the economic policy of a country?

What could possibly go wrong when a six time bankrupt person determines the economic policy of a country?

General Motors
Chrysler
Marvel Entertainment
Texaco
Apple-was going to file but Microsoft saved them with a $150,000,000 USD cash infusion
GMAC/Ally Financial

What do they all have in common?

Bankruptcy, which is just a form of restructuring and paying off debt.

And just to be clear, HE has never filed personal bankruptcy, mostly Chapter 11 types to protect assets and pay off debt. And also to be more clear, almost all of those Chapter 11 filings were for Casino related businesses that were decimated as the whole Atlantic City business conglomerate was due to the Great Recession around 2008/2009.

This isn't even mentioning how many other businesses ultimately closed for good in all sectors of the economy which is about 1,800,000 along with almost 9,000,000 jobs lost.

So I think someone that came out of that bloodbath and is as successful a businessman as HE is today, is actually a great choice to get this country back on track economically.

 

[Kiwamu]

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.

Or they raise the prices globally to try to cushion the blow for the americans... which will in turn encourage me to keep my 13 mini for as long as I can and switch back to Android.

 

[Stuwil]

But the tariffs go straight to the government as a form of tax.

The political party allegedly in favour of a small state, low tax government just put a 40% sales tax on consumer electronics. This additional government revenue will then be used to justify heavier tax cuts for the rich.

Once again the average citizen suffers.

Exactly mate
They have put tariffs on Ireland American companies buy generic medications from there as it’s cheaper so that means it’s cheaper for Americans yet if they have to buy branded then it will be dearer full stop & so on & so on
It’s just silly to think this will benefit the average American citizen

 

[Wando64]

Doesn't really matter where you live, you have taxes to deal with. It's just that right now, it's cool to hate Donald Trump so everything he does is treated as the worst thing to ever happen in the history of the world.

I don’t have any energy or time to “hate” Donald Trump, or anyone else.

I do think though that he’s a crook with complete disregard for anyone other than himself.
I do think that he doesn’t have his country’s best interests at heart.
I do think that his style of doing business is outdated, misguided and ultimately ineffective, and the country and its citizens will pay a high price for his mistakes.

That’s what I think.

 

[Stuwil]

Or they raise the prices globally to try to cushion the blow for the americans... which will in turn encourage to keep my 13 mini for as long as I can and switch back to Android.

Exactly that is what I said in a previous thread that Apple will put up the price globally on every iPhone apart from the iPhone 16E so in doing that it will cover the cost of the tariffs & then actually make them money because the extra cost is getting out onto everyone.
What will be interesting is the pixel & Samsung events come after Apple I wonder what they companies will do with the price of their new phones because I have a sneaky suspicion if Apple increases their prices then google & Samsung won’t

 

[CausticSoda]

A trade deal will be negotiated. Keep in mind most of the media is left to extreme far left, and looks for any opportunity to attack Trump for any reason.

What do you mean? For example China has now imposed a 34% tariff on imported US goods. So Apple products will rocket in price in China, which will strangle Apple growth. I don’t think China is looking to negotiate anything. They’ll enjoy watching an idiot who has shot himself in the foot, limping along. Their home grown stuff will benefit enormously which will at least to some extent alleviate their export issues. But as for America, I can’t see any benefit at all because the world won’t suddenly be choosing to make everything expensively in America. It’s just a disaster. It’s the American working class who will get hammered.

 

[j26]

Exactly that is what I said in a previous thread that Apple will put up the price globally on every iPhone apart from the iPhone 16E so in doing that it will cover the cost of the tariffs & then actually make them money because the extra cost is getting out onto everyone.
What will be interesting is the pixel & Samsung events come after Apple I wonder what they companies will do with the price of their new phones because I have a sneaky suspicion if Apple increases their prices then google & Samsung won’t

Do you think Apple will survive outside the US with a huge price premium over others?

If a person in, for example, the EU is looking at an iPhone for 1400 Vs a comparable android for 1000 the the iPhone is looking at losing a lot of market share.

On top of the straight taxation effects, uncertainty and confidence are probably equally important issues, if not bigger.

 

[Morgenland]

Is this the buy order for leverage certificates, with which 'courageous' investors now bet on falling prices everywhere? So that we have to pep up a broken AAPL again?

A nifty money redistribution concept, this time more powerful than any socialist model the Republicans have been criticizing.

 

[Populus]

Hey @jclo I think it would also be interesting to analyze the prospect of prices outside the US, like in Europe or Asia, for instance. I know, if it is hard to predict what will happen in the US, it is even harder to predict what will happen with prices in other regions, such as the EU. But yeah, it would be an interesting speculation exercise.

Regarding the post question: Is now the time to upgrade your devices? I say yes. I have an aging 2014 Mac mini and I’ve been considering upgrading to an M4 Mac mini but decided to wait for the M5 Mac mini. Now with all this uncertainty around prices, I’ve decided to settle with the M4 before prices get higher even here in the EU.

 

[Morgenland]

Do you think Apple will survive outside the US with a huge price premium over others?

If a person in, for example, the EU is looking at an iPhone for 1400 Vs a comparable android for 1000 the the iPhone is looking at losing a lot of market share.

On top of the straight taxation effects, uncertainty and confidence are probably equally important issues, if not bigger.

You're absolutely right, and it's a harsh truth to face.
The gap between Chinese products and US iPhones is practically a whisper now—on the hardware front, Apple pours infinite resources into staying just a step ahead.

If the West continues to weaken as an economic organization, China will become very, very strong. DJI shows what they can achieve in high-tech.

Yet, it's disheartening that in Europe, the true power of iOS, this unparalleled operating system, barely holds sway. For so many, the brand's style trumps the seamless experience iOS/iPadOS/macOS/audioOS/tvOS/watchOS/visionOS offers, leaving them tethered to PCs in their personal lives, never truly embracing the magic of Apple's integration.
And to top it off, Trump’s decisions are slowly but surely undermining Apple, driven more by gut feelings than expertise.

Apple once stood as a beacon of innovation, the pride of America, admired worldwide.
Now, it feels like the towering Lakhta Center (Лахта Центр в Петербурге) will soon get more attention than the iconic Apple Park.

Jesus! How far we’ve fallen. In a few months. By one person.

 

[Stuwil]

Do you think Apple will survive outside the US with a huge price premium over others?

If a person in, for example, the EU is looking at an iPhone for 1400 Vs a comparable android for 1000 the the iPhone is looking at losing a lot of market share.

On top of the straight taxation effects, uncertainty and confidence are probably equally important issues, if not bigger.

If you want my personal opinion it’s this I’m personally seeing a lot more people with Samsung & pixels & other android devices because the gap is not the big previously in regards to software & hardware plus I think price is also starting to play a part in it so yes it will definitely hurt these tariffs because if for example the iPhone 17PM goes to 1,299 in the USA then I fully expect the price to be the same in the UK & so on.

 

[skitidetdu]

Listen. We are way better off than some other country. I mean the Penguins are totally screwed!!!!

View attachment 2499260

Says a lot about the administration...

 

[Morgenland]

We're so ****ed. As you said with the Switch, who knows what it'll end up costing with the new tariffs? It might actually be cheaper for my co-worker in Ireland to buy me something and bring it with him on a work trip rather than me buying something here in the US.

Don't worry, we won't forget US friends. CARE upgrades on their way back...
But wait, mistake: there are tariffs now...

 

[iHorseHead]

Will Apple spread the pain globally and increase prices outside of the U.S?

Of course. Why would you think it wouldn't? Americans pay $2000 for an iPhone and Europeans will pay 3000€ for the same iPhone.

 

[Unami]

What do you mean? For example China has now imposed a 34% tariff on imported US goods. So Apple products will rocket in price in China, which will strangle Apple growth.

Eventually if Apple moves production to the US which would raise prices unless it's all robots in the factory (and reven then they'll probably need raw materials from abroad). Which they probably won't because then that would raise iPhone prices in the rest of the world.

But at the moment, Apple products are not "US goods". They are made in China and won't leave their country of origin when they are sold there. There could be higher tariffs like services, like iCloud drive though.

Either way, that orange clown should be gone in four years. Moving production to the US would not be faster. So if he doesn't manage to take the entire world economy down with him, we should be able to sit it out (crying and laughing at the same time)

 

[CausticSoda]

Will Apple spread the pain globally and increase prices outside of the U.S?

They will increase in many countries anyway because of retaliatory tariffs. I’m not sure how many Americans understand that the price of their exports will rise (leading to a decrease in demand) in any country choosing to impose their own tariffs eg China. At the moment there are few tariffs imposed on America. Trump’s cardboard table is a lie - they are not tariffs.