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Kuo: Apple Can Reduce Impact of Trump's Massive Tariffs in Five Ways

Gen said:
Or we just get a new president?
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You would think that would be it but I hate to break it to you that a good chunk of Americans wholeheartedly support what the President is doing, a lot are showing their true colours clapping for all of this. Canada is learning Americans aren't the ally and friend we thought they were.

The orange man might come and go, but most Canadians will never forget this moment in our shared history and I reckon most around the globe won't forget it.

These policies might bring pride and happiness to a portion of Americans domestically, the long term effects on the relationships and partnerships America will need in the future will be forever felt.
 
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People could just keep their devices longer too.... you don't need a new phone every year.

However many iPhone "Pro" buyers rarely if ever utilize any of those features and continue to get them so raising the price a little on those could be a simple option. People throw money at whatever and will not stop until their credit runs out. So Apple couldn't care less how they get their money as long as they GET IT!
 
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Not sure if this would mean iPhones in India would cost lesser than it is in America, for the first time! LOL! People can fly to get iPhones from India, like Indians do earlier by buying iPhones from USA or Hong Kong or Dubai!
 
Just skip the annual upgrade cycle. Stick with your current phone until it no longer meets your needs. Neither the government nor tech companies are particularly concerned about your personal finances.
 
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nikon1 said:
If we don’t learn from history, we’re doomed to repeat it!

The Tariff Act of 1930 (codified at 19 U.S.C.ch. 4), commonly known as the Smoot–Hawley Tariff or Hawley–Smoot Tariff, was a law that implemented protectionisttrade policies in the United States. Sponsored by Senator Reed Smoot and Representative Willis C. Hawley, it was signed by President Herbert Hoover on June 17, 1930. The act raised U.S. tariffs on more than 20,000 imported goods.
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I see a lot of talk online about this, but it’s not an apt historic comparison. At that time America was a major manufacturing country who would supply the effort to defeat the Nazis a decade later. We mostly made our own goods and didn’t import nearly as much as we do today.
 
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Aeronauts said:
All the big tech leaders who donated millions to Trump’s inauguration have seen their share prices sink today. You have to laugh at the irony.
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But they knew this was coming. Trump told them this was coming. Apple STILL announced $500 billion in American investment about a month ago knowing that tariffs were in play. We all assume that business leaders will be upset by the tariffs, but that may not be totally true.
 
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ThomasJL said:
Tim Crook donated $1 million to that fascist tRump. Therefore, I have no sympathy for Tim Crook if Apple's future sales are bad, and I have no sympathy for Tim Crook supporters if future Apple price increases harm them.
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Much to the chagrin of many, it’s my contention Apple will be just fine going into the future.
 
nikon1 said:
If we don’t learn from history, we’re doomed to repeat it!

The Tariff Act of 1930 (codified at 19 U.S.C.ch. 4), commonly known as the Smoot–Hawley Tariff or Hawley–Smoot Tariff, was a law that implemented protectionisttrade policies in the United States. Sponsored by Senator Reed Smoot and Representative Willis C. Hawley, it was signed by President Herbert Hoover on June 17, 1930. The act raised U.S. tariffs on more than 20,000 imported goods.

Excluding duty-free imports, when enacted, the tariffs under the act were the second highest in United States history, exceeded by only the Tariff of 1828.[3] The act prompted retaliatory tariffs by many other countries.

The act and tariffs imposed by U.S.'s trading partners in retaliation were major factors in the reduction of American exports and imports by 67% during the Great Depression.

Economists and economic historians have agreed that the passage of the Smoot–Hawley Tariff worsened the effects of the Great Depression.

Congratulations, Donnie”tariff” trump, more than likely you’ve kicked off another Great(er) Depression! Maybe it’s a “Once In A Century Great Depression?”
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It won't be a Great Depression. It'll be the Greatest Depression Ever.
 
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TokyoKiller said:
You would think that would be it but I hate to break it to you that a good chunk of Americans wholeheartedly support what the President is doing, a lot are showing their true colours clapping for all of this. Canada is learning Americans aren't the ally and friend we thought they were.

The orange man might come and go, but most Canadians will never forget this moment in our shared history and I reckon most around the globe won't forget it.

These policies might bring pride and happiness to a portion of Americans domestically, the long term effects on the relationships and partnerships America will need in the future will be forever felt.
Click to expand...
Not to go off topic here but all that will change when his domestic policies start to affect average Americans

And when the cost of their iPhones & android devices go up in price then let’s see how people react to it then
 
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I7guy said:
Much to the chagrin of many, it’s my contention Apple will be just fine going into the future.
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Because they will just raise the prices to combat bat the tariff increase & most will pay it anyway
And as a consequence of that then Apple will increase their prices across the board so then more profits for them
 
I think Kuo has a lot of Apple stock and is trying to bump up the stock price during this sell off 😆
 
ThatGuyInLa said:
Apple is going to have to decide if their 600% markup for ram and hard drive upgrades is where they can carve out some loss to keep prices roughly the same after all of these tariffs and still make piles.
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I would appreciate if we can remember to mention WHO is forcing Apple and every other American company to add tariffs/taxes to their prices instead of making it seem like Tim Cook suffered a stroke and decided to add a few hundred dollars to its entire lineup of products for no reason:

If, hypothetically, Apple were forced to raise the price of a $1000 product to $1100, because of a tariff increase of 10%, then Apple would suffer from that 10% increase as it neither adds to Apple's profit margin, nor does it make the $1000 product more attractive or affordable to consumers, a change that would lower sales to some extent.

It would be Apple earning $100 less per product sold if they don't raise the $1000 price. Or it would be the buyers of Apple's $1000 product paying an additional $100 that doesn't even add to increased profits for Apple.

Tariffs are not in Apple's interest.
 
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Stuwil said:
Because they will just raise the prices to combat bat the tariff increase & most will pay it anyway
And as a consequence of that then Apple will increase their prices across the board so then more profits for them
Click to expand...

Naa, Apple Products are not like fuel and groceries...they are not an inelastic good. There is a cap, and there is a point when sales will drop.
 
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Stuwil said:
Because they will just raise the prices to combat bat the tariff increase & most will pay it anyway
And as a consequence of that then Apple will increase their prices across the board so then more profits for them
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Apple doesn't see increased earnings from hiking prices to combat losses due to increased tariffs.

And the idea that Apple can raise prices indefinitely and not suffer lower sales is only true on a small scale and certainly not an absolute truth:

None of us have infinite money to pay for anything just because demand is high and it's an attractive product.

-Apple's sales suffer when their prices go up too much, too soon. Price increases have to follow market trends and inflation to a reasonable extent or consumers cannot follow even if they want to.
 
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Stuwil said:
Because they will just raise the prices to combat bat the tariff increase & most will pay it anyway
And as a consequence of that then Apple will increase their prices across the board so then more profits for them
Click to expand...
Okay, but nobody can force a potential consumer to buy their products if the consumer doesn’t feel like the product has a good cost/price ratio.
 
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JordanCautious said:
There’s another option though: Ask for an exemption from his ‘buddy’, which has happened in the past. The stock, as I’m writing this, is down -9%. In a single day 😳. Insanity.

I was planning to buy a M5 Max Mac Studio next year but it looks like I have to actually consider building a PC. In fact, I now have to reconsider all my Apple product spending and I’m guessing everyone else feels the same. If Apple raises prices, it might be over 🙅‍♂️
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Exactly.

I think most of us in here could probably muster the tariff-induced increases on the smaller products, like iPhone, AirPods, MacBooks Air, etc. Terrible but could be done.

But for the bigger, high-end Macs, this will get absolutely out of hand.

And then the incentive to even get the smaller products suffers as being the Apple ecosystem really only makes truly sense if you're all in.

Apple is going to lose a lot of market share unless there's some loophole to circumvent the tariffs.
 
Orange Bat said:
Perhaps. Or tariffs could spark American manufacturing learning to more good union jobs for low income communities. I don’t know. That’s why I’m taking a “wait and see” attitude right now.
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Bringing manufacturing jobs back to the U.S. will make the products more expensive. No one wants to work for a low wage as domestic product prices climb. This whole tariff cycle is a large tax hike on U.S. citizens.
 
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ApplesAreSweet&Sour said:
Apple doesn't see increased earnings from hiking prices to combat losses due to increased tariffs.

And the idea that Apple can raise prices indefinitely and not suffer lower sales is only true on a small scale and certainly not an absolute truth:

None of us have infinite money to pay for anything just because demand is high and it's an attractive product.

-Apple's sales suffer when their prices go up too much, too soon. Price increases have to follow market trends and inflation to a reasonable extent or consumers cannot follow even if they want to.
Click to expand...
If Apple are forced to pay increased tariffs for their products
Then they will increase the price of said products to offset the increase charge instead of reducing profits
 
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