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Kuo: Apple Likely to Absorb Any US Tariff Cost Increases on iPhone, iPad, and Mac
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If youre so Anti American. Move to China.
These business decisions are far less personalized than you seem to imagine. The bottom line is that the end-customer price is going to be a determinant of sales. No one is going to buy a product based on the who/what/why of one of the many cost factors. Apple is going to price to optimize short term and long-term profits, not to make a political statement by the CEO.
You dont actually think Biden has a chance against Trump do you? You poor poor soul.
The whole Dem. grouping is a natural disaster. I saw a movie in the 90's called "Dumb and Dumber". The happenings this summer almost seem like a sequel 8x over, lol.
Last I checked our focus should be take care of what's at home first. But everyone is so focused on taking care of neighboring countries. Mexico and South America have their issues, and when I pay my taxes I'm paying to keep our country safe. Not give free benefits to everyone else.
That might sound selfish and maybe it is some. But we can't continue to be the world police.
Last I checked our focus should be take care of what's at home first. But everyone is so focused on taking care of neighboring countries. Mexico and South America have their issues, and when I pay my taxes I'm paying to keep our country safe. Not give free benefits to everyone else.
That might sound selfish and maybe it is some. But we can't continue to be the world police.
I agree, Jim. Apple will likely eat the cost of the tariffs in the US market, but I suspect that much of the concessions in price that Apple has made in developing markets will reverse course to offset the cost of doing business back here. Not to mention the argument that Apple has jacked prices up in recent months/years and have likely put themselves in a place to be able to absorb tariffs more readily.
When the tariffs truly become a burden, Apple's supply chain master will move the supply chain where it needs to be to get the job done at a price that is beneficial to Apple.
When the tariffs truly become a burden, Apple's supply chain master will move the supply chain where it needs to be to get the job done at a price that is beneficial to Apple.
Exactly my thought, prices will remain as they are in the US, higher ones to be expected in for instance Europe amongst others.
Why is that?
The most powerful hardware manufacturing company on the planet with the off-the-charts stock evaluation and it's "unclear" whether they will be tariffed?
iPhone have been overpriced for quite sometime and the higher prices have been hurting sales. It would have made no sense to increase the prices temporarily due to tariffs. Absorbing it is the logical solution and Tim is no Good Samaritan by not passing the increase to the customer.
People forget that Apple like many companies take advantage of tax loopholes by not paying they fair share of corporate taxes which is understandable as the government has to fix tax laws. However Apple also has a lot of cash in-hand and that accumulated interest that can offset any temporary tariffs. Plus I suspect Apple may try to offset the increased cost through write offs or other production or services cost cutting measures.
People are so business naive.
If you are not a Rep you are a Dem, if not a Dem then a Rep, both parties have they pros and cons and the system stays unchanged. But don’t worry as long as the party in power is the one we align with.
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With the prices of the current products especially the Mac Pro they’re making enough to eat five tariffs.
You mean by selling out to the corporations - making every signatory subject to the whims of multinationals - much like lobbying in the USA? TPP was negotiated in secret and would be defacto supra-legal. There is no way that large corporations would not take advantage of the loopholes in the TTP to profit over the public.
I am glad that that, and TTIP, are currently on hold.
"On the basis of leaks, economists Joseph Stiglitz and Adam S. Hersh criticized the ISDS provisions of the TPP for interfering with the ability of governments to prevent public harm, alleging that if asbestos been discovered today, governments would have been unable to impose regulations without creating grounds for an ISDS suit.[135] Stiglitz also claimed that the TPP would give oil companies the right to sue governments for efforts to reduce carbon emissions and global warming.[136]
In November 2015, Columbia professor Jeffrey Sachs concluded that the ISDS system of the TPP grants huge power to investors, and damages the judicial systems of all the member countries. He alleges that ISDS has been already used by corporations to upset governments so as to weaken the regulations that have negative effects on their profits"
You are not going to win an election with Joe Biden. People thought Hillary was the safe choice given that she was the most popular government official right up until the primaries started. Joe Biden will suffer the same fate. He'll get nit picked to death and those who aren't Democrats or regular voters will decide not to vote. It's better to turn up the base rather than catering to the 2% percent who are truly undecided. Joe Biden is just going to be Trump without the racist commentary then he shouldn't even be running. What's the other difference between them? Joe Biden voted for Clarence Thomas even.
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All of the above items are already reflected in Apple's 21% *net* profit margin (Apple's GPM is approx 38%). An Apple-absorbed 10% tariff hit will subtract from that as well. Unless Apple passes the tariff on to consumers, which they likely will.
My 2016 15" MBP was roughly the same price as it was for the 2012 15" MBP and that's without accounting for inflation.
Considering Apple's 21% net profit margin, it seems you'd not be happy with Apple making zero profit, but want them to lose money on every sale of their products.
Well, unless you are in the following situation, i would say Apple is in all of them.
1) Apple profit margin is ridiculously high
2) The Apple premium people are willing to pay has eroded
3) Competitor products are equal if not better
4) Competitor products are cheaper
5) Raising the price would see loss of market share in the smart phone market
6) Any loss of market share would further decrease ecosystem revenue (can't buy an Apple watch without an iphone)
what we don't know is what Apple was going to do before this tariff - they might have been going to drop prices by 10% and now will keep them the same.
Anyway you cut it the US is paying for this tariffs whether by citizens buying of company profits - we not China will pay for this.
Anyway you cut it the US is paying for this tariffs whether by citizens buying of company profits - we not China will pay for this.
What R U talking about? Trump's giving farmers $16B bailout with our tax $. We pay them for stuff they can't sell to China.
Yes, they do.
Farmers are getting $16 billion in aid from U.S. taxpayers.
If things get worse for them, congress and Trump will just whip up another farm bill with billions more in financial aid.
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It’s almost unfathomable how big corps/business work. There are so much preparation and future planing!
I think Apple is quite pleased with not having a product guy at the steering wheel
Imagine if we could have a product guy as CEO and then let someone else deal with the day-to-day operations of the business. We could even give this person the title of Chief Operating Officer.
What kind of regulations? American cars have trouble in Europe too because of the lower safety standards America works to.
[doublepost=1565025582][/doublepost]Tim will absorb the cost using the massive tax handouts Trump gave him.
I am so glad Trump has levied a massive tax on all of us. Being that 85% of what we buy has no alternative to China, the majority of Americans, will be buying tariff products and ripping money out of their wallets straight to the feds. Yeah, really hurting China there buddy.
Poor people pay proportionally more tariffs. Rich people get tax relief. Win-win for Trump.