Why should Apple absorb any cost increase from tariffs when China's paying them?
http://twitter.com/realdonaldtrump/status/1125069835044573186
http://twitter.com/realdonaldtrump/status/1125069835044573186
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Kuo: Apple Likely to Absorb Any US Tariff Cost Increases on iPhone, iPad, and Mac
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Apple could write off $200 on the base Macbook Air and still make a larger profit than Dell does on a $1,500 laptop.
Chinese currency has fallen to the lowest levels in over a decade. This is how China will deal with Trump's tariffs. The 10% tariff will be offset by a lower manufacturing cost denominated in US dollars. However, this will do nothing to improve the trade imbalance. In fact, the trade imbalance will get worse because of this.
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It does not come without a cost. Shanghai is down 9.1% this past month. China and Hong Kong are seeing capital flight.
One other thing is that China has a dollar shortage.
And the corporation-centric situation you described is different than how the USA already operates?
It would add another layer of the same.
So we're better without it but we still have big problems.
America gets China to make everything and then is surprised to find that China now knows how to make everything. You didn't see that coming?
By now it should be recognized that Apple needs to lower the prices on iPhones, any price increase is off the table as it will hurt sales that are already in decline. But with the idiotic tariffs imposed, Apple will likely choose against lowering the prices, which means the tariffs are still effectively passed on to the consumer.
Most people I know have switched to Android because the iPhone X has priced them out of the market. The only people who have stayed, are like my Mum who doesn't know any better... but all she has done is stuck with her current phone instead of upgrading.
So I don't see how Apple could increase the prices any more, they'd have to start manufacturing in the US instead.
So I don't see how Apple could increase the prices any more, they'd have to start manufacturing in the US instead.
I agree, prices need to come down a bit. If not the consequences would be pretty bad. Apple could actually afford to do so as it has other revenues for income now from Apple related products/software. If they were smart they would drop prices a bit. They could make more money from more users to make up for small drop in price from other services.
They're still selling 7, 7+ models. I bought the 7+ two years ago and don't plan to upgrade in the next two years. I don't need the latest and greatest anymore.
Most of what people say about trade is wrong. I am a radical free market person and usually in the short term tariffs hurt ourselves even when unilateral. In the long term it appears that unequal trade rules (not the amount as in trade deficit- that doesn’t matter) can cause structural changes in the economics of our society that lead to long term negative consequences. We have now experienced those and so temporary tariffs as a bargening chip to lead to freer less regulated trade seem reasonable. I think both parties are coming to this conclusion. Of course they will attack the other party but more and more I see consensus behind the basic idea that trade deals which open markets but result in uneven regulations and restrictions are not long term free trade deals. Sure Trump is an idiot who does idiot stuff but he is the leading indicator. I will be shocked if the final candidate from either party will be pro-China.
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Trump cannot help making people dislike him even when he is 100% correct and vindicated. He cannot let people heal because he is petty and almost never magnanimous to his opponents. All Biden has to do is not be crazy like the rest of the Democrats seem to be doing and basically say - “Let’s keep this economy booming and let’s try being a little nicer.” And then be nicer and run as a happy positive centrist (Beto was actually also good in this role - he is a positive guy). He can even say nice things about what Trump has done that is good and be above the fray. I think lots of Americans would love that and are tired of the constant negativity (which to be fair is certainly not all Trumps fault - he is basically a 1990 democrat and has somehow made people totally insane but he also feeds into it).
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I think Biden has a very good chance and I don’t favor either.
Trump cannot help making people dislike him even when he is 100% correct and vindicated. He cannot let people heal because he is petty and almost never magnanimous to his opponents. All Biden has to do is not be crazy like the rest of the Democrats seem to be doing and basically say - “Let’s keep this economy booming and let’s try being a little nicer.” And then be nicer and run as a happy positive centrist (Beto was actually also good in this role - he is a positive guy). He can even say nice things about what Trump has done that is good and be above the fray. I think lots of Americans would love that and are tired of the constant negativity (which to be fair is certainly not all Trumps fault - he is basically a 1990 democrat and has somehow made people totally insane but he also feeds into it).
American Congresses under both parties have been doing this for about 30 years. It’s always gross but 16 billion is a tiny amount compared to most “farm bills”. I mean it’s fun to squeal like Trump is doing something special but this is sadly politics as usual in America since forever.
I don't see political disagreement on China. The articles that I read quoting politicians basically indicate that.
The media, and partisans, though, who hate the politicians, are stoking the flames.
I think that Biden has a lot going for him from the average person just doing their job and not making a lot of noise on social media because they're too busy with living life.
I guess you're supporting removing schools, roads, social security, parks, libraries, the armed forces, police, fire fighters.
Government isn't all bad.
Over-regulation in governments is what gets out of hand. Protecting the environment from polluters? Good. But outlawing straws is going too far. Saying 'government is all bad' is not the same thing as saying 'government has gone too far with X and Y' while still realizing that government is good for many reasons.
We are the government. If you want to see what government looks like, join your local planning board, water management board, library board, education board. There are all kinds of service opportunities available that help make the town run that most people don't know about. These boards do a lot of important work that most people take for granted. There are also the civil service jobs but I'm assuming that we're already employed.
Much of the right is unhappy because it is not free trade, much of the left is unhappy because it is proposed by Trump.
But really, wouldn't you be happy if it came from anyone else and caused "evil corporations" to pay more tax?
Cook will do whatever is best for shareholders. That's his job. If that means short term eating the cost so as not to alienate the customer base, it makes sense.
Ask farmers how they’re doing regardless of the taxpayer-funded charity money the feds are giving them.
If you really think China the country is paying the tariffs................. (HINT, they aren't)
First, it is laughable to assume “government serves the people”. It won’t come even close for any president than George Washington, or not even so. Government serves big players with super deep pocket.
Second, with or without USA tariff, China will aggressively grow their influence through whatever means possible anyway. IP theft is just part of their grant plan to dominate the world.
Company CEO obviously cares more on money than politics and any negative impact on their products. Isn’t that surprising to you? I believe no.