Kuo: Apple Likely to Absorb Any US Tariff Cost Increases on iPhone, iPad, and Mac

[[AUT] Thomas]

Well... that would only mean that Apple stuff costs the same as in Europe I guess.

Or more likely: Apple further raises the prizes everywhere to compensate for lower US margins.
Looking at the Mac Mini pricing we are already beyond sanity anyway...

 

[lowkey]

For everyone blaming Trump, grow up and stop being a band wagoner. Since when has more government and any government been a good thing or been done correctly?

.

Since Norway, Denmark and most of northern europe...according to the world economic forum
https://www.weforum.org/agenda/2019/03/finland-is-the-world-s-happiest-country-again/

 

[hagar]

Nobody forced US companies to move production overseas to China. They went that way for one reason and one reason only: profit. They chose money over domestic production and local jobs. And it worked out great for them: They made a fortune. Unfortunately regular people did not profit at all. China is not to blame for that. Blame corporate greed and capitalism.

 

[Vjosullivan]

Nobody forced US companies to move production overseas to China. They went that way for one reason and one reason only: profit

Yes. Companies make a profit or they die. The majority of the public don't care where their car/washing machine/TV/phone etc. is made. They just want it to work and will buy the best that they can afford. So, if the competition makes a better and/or cheaper product for less than you, you have no choice but to do the same.

 

[827538]

There is no rule that says trade should be balanced. If another country sells what you want to buy and at the right price, you buy it. It really is that simple.

Tariffs are all about politics and have nothing to do with trade.

When China starts abiding by WTO rules and international norms on currencies then I’m sure this would be true.
You have one player here that is not playing by the rules so is being hit with tariffs.
[doublepost=1565110536][/doublepost]

Yes. Companies make a profit or they die. The majority of the public don't care where their car/washing machine/TV/phone etc. is made. They just want it to work and will buy the best that they can afford. So, if the competition makes a better and/or cheaper product for less than you, you have no choice but to do the same.

You’re rather glossing over a lot of details. This isn’t just some country producing stuff cheaply, this is a country that is failing to respect IP of Western countries, artificially deflated its currency to keep its exports attractive, illegally dumps on world markets.

You are either being disingenuous or do not understand what China has been doing and continues to do.

I have no problem buying a product from another country if it is made cheaper, I do take issue with a country that is cheating.

 

[ThatGuyInLa]

It’s really baffling that people like you don’t get mad at all the politicians who allowed it to get to the point where 85% of our products come from China, but do get mad at the one guy who finally is trying to do something about it.

People like me? LOL. Dude. The switch to China sourced goods began in the late 50s and was already in full swing by the time I was in my teens. Also, I do my best to avoid “Made in China”
where ever I can. Still, it’s extremely difficult. Luckily I don’t need much.

 

[jdclifford]

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.

This is in ADDITION to the Hugh normal price supports farmers receive. Trump now promises to do it again next year (just as a political vote getter).
[doublepost=1565127961][/doublepost]

People like me? LOL. Dude. The switch to China sourced goods began in the late 50s and was already in full swing by the time I was in my teens. Also, I do my best to avoid “Made in China”
where ever I can. Still, it’s extremely difficult. Luckily I don’t need much.

Before “Made in China” was the rule it was “Made in Japan”. Only difference is the “Made in Japan” translated into cheap, easily breakable items like toys etc. They had a shelf life of 5 minutes before they were ready for trash bin.

 

[Brandhouse]

Not sure I see that one. They are getting fewer dollars per item shipped and they have to spend more to import raw materials.
[doublepost=1565076261][/doublepost]

As a plethora of financial charts will show, the global slowdown has been in place for some tine and certainly before last week.

I'm not talking last week. It's been exasperated since Idiot Trump took the stage swinging his appendage around in the lead up to the elections saying what he'd do to world trade agreements and more so since August last year when he started talking trade war. Sure there are other factors, but there's one big factor. Look outside of your US market analysis to anywhere else around the world and take the blinkers off.

 

[AsherN]

There is no rule that says trade should be balanced. If another country sells what you want to buy and at the right price, you buy it. It really is that simple.

Tariffs are all about politics and have nothing to do with trade.

Correct. The big fallacy is that trade is a zero-sum game. It will never be between any 2 countries. It may be close between a country and the rest of the world. Maybe.

 

[szw-mapple fan]

Not sure I see that one. They are getting fewer dollars per item shipped and they have to spend more to import raw materials.

But the thing is, China has more than enough dollars flowing in from all of its exports. The reason there was less in past years was because of foreign investments and buying US treasury bonds. The amount of dollars flowing into China is so much that by simply doing nothing with it China is able devalue its own currency against the dollar. The marginal increase of cost of raw materials isn’t significant enough to affect reserves in a dramatic way since China has a huge trade surplus even with a weaker yuan.

 

[Aftermath747]

People like me? LOL. Dude. The switch to China sourced goods began in the late 50s and was already in full swing by the time I was in my teens. Also, I do my best to avoid “Made in China”
where ever I can. Still, it’s extremely difficult. Luckily I don’t need much.

So you recognize the harm China has done to our manufacturing but get upset with Trump for having a spine and doing something about it?

 

[ThatGuyInLa]

So you recognize the harm China has done to our manufacturing but get upset with Trump for having a spine and doing something about it?

You’re not getting it. It’s like gun control. It’s too late. Ship sailed. Trade war won’t work and we will be gouged.
[doublepost=1565159213][/doublepost]

This is in ADDITION to the Hugh normal price supports farmers receive. Trump now promises to do it again next year (just as a political vote getter).
[doublepost=1565127961][/doublepost]
Before “Made in China” was the rule it was “Made in Japan”. Only difference is the “Made in Japan” translated into cheap, easily breakable items like toys etc. They had a shelf life of 5 minutes before they were ready for trash bin.

Then came Sony, Toyota, and Honda.

 

[Aftermath747]

You’re not getting it. It’s like gun control. It’s too late. Ship sailed. Trade war won’t work and we will be gouged.
[doublepost=1565159213][/doublepost]
Then came Sony, Toyota, and Honda.

I guess we should just throw our hands up and do nothing then.

 

[Vjosullivan]

I guess we should just throw our hands up and do nothing then.

You could try pushing water uphill but it will always flow back down again once you stop.

The economic reality is that it is cheaper to produce most of these goods outside the US and ship them in. Political rhetoric won't change that. Blaming other nations for perceived domestic woes is a trope that's been around for as long as their have been politicians.

The solution lies at home. Make it better. Make it cheaper. If you can't then find another line of work. Harsh, I know, but free market competition is what built America not taxes and hot air.