So not only do you disbelieve practically every economist out there that says because of these tariffs then prices will go up as a consequence
Yes. I’m arguing the 16e is the entry level iPhone and the price increased on that model relative to the SE for reasons only Apple knows. In the same vein as the SE last year was the entry level iPhone.
Entry level & base model is the exact same thing
It’s interesting that the article doesn’t mention that Apple could bring manufacturing back to the United States. I don’t believe it will significantly increase the cost if they bring manufacturing back to the United States. There is fearmongering going on as some articles claim that it will drive the price of an iPhone up to over $2000. Apple doesn’t manufacture its products in other countries like China or Vietnam so that consumers can save money. They simply do this for profit reasons. And I'm sorry to say that individual consumers who are more concerned about the price of their electronic device (s) and not about how Apple and other companies are knowingly employing people for all intensive purposes to be slave workers is unethical and immoral!
U.S. President Donald Trump on Wednesday announced that massive tariffs will be applied to imports from many countries, starting April 9. The tariffs will significantly impact Apple's supply chain, with iPhones and other products imported to the U.S. from China, India, and Vietnam set to face 54%, 26%, and 46% tariffs, respectively.
Apple supply chain analyst Ming-Chi Kuo today said that if Apple does not raise prices, its overall gross profit margin could face a significant drop of 8.5% to 9%, due to the tariffs significantly raising costs. However, he outlined five ways in which Apple can reduce the impact of the tariffs on its gross margins going forward:
Apple's overall gross margin was 46% in the 2024 fiscal year. Gross margin is a profitability metric that indicates the percentage of money that Apple earns on a product like an iPhone after subtracting the costs of making the product. Even if Apple's gross margin drops below 40%, Kuo believes this dip "should be short-lived."
- Apple can boost iPhone production in India. Kuo said if India can secure tariff exemptions through new trading agreements with the U.S., and Apple boosts its iPhone production capacity there to over 30% of its global supply, the negative impact on gross margins could shrink to just 1% to 3%.
- Apple could raise prices on iPhone Pro models. In the U.S. market, Kuo said high-end iPhones account for 65-70% of new model sales, and he believes that "high-end consumers are relatively more accepting of price increases." So, the Pro and Pro Max models could see price increases, if absolutely necessary.
- Apple could increase carrier subsidies for iPhones.
- Apple could reduce trade-in values to partially offset the costs of tariffs.
- Apple could put even greater pressure on its suppliers to cut costs.
Apple's stock price dropped more than 9% since Trump's announcement.
Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News 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: Kuo: Apple Can Reduce Impact of Trump's Massive Tariffs in Five Ways
No it’s not. The same as a civic is not an accord.
The price has increased for reasons unknown to you. Come September the base model iPhone 17 will be at $799 same as today, while the upper models will bear the brunt of any increases.
I don’t think we can look at history to determine what will happen in the current situation.
Nobody is disputing that for example the people who make the iPhones get paid $2.88 an hour & have to work about 14 hours straight is wrong
I just need to ask are you trolling?
So you accuse one of trolling because of their opinion? It’s up to the individual to believe what they want about where this will go. And whether the 16E is an entry level or base model, etc.
It’s fine to have an opinion however when every economist has said that prices will go up & Apple will have to put them up
The economists and buffet are saying what? The 16E is the base model? As opposed to the “budget” model?
That companies affected with the tariffs will increase prices
You can get ready for the upcoming “tarrifpocalypse” as you see fit and I will as I see fit.
It’s only bashing if you’re a fanboy. To everyone else it’s reality.
I’m assuming you must be a well known Economist if you know something that experts don’t in regards to price increases?
It’s all right to like products but for me a fanboy is when someone praises a company no matter what
for example every company make mistakes yet when you point a few out regarding Apple there is always one who defends it to the hilt regardless if it’s wrong
Hmm. Throwing ad-Homs around.
And similarly it’s fair to say one who criticizes then even when apple are right. But what has this got to do with tariffs?
I was responding to a post someone made about fanboys
What constitutes wrong?
