Original Apple Watch Named, Current Models Omitted in Latest Proposed U.S. Tariffs on Chinese Goods

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jul 20, 2018.

  1. MacRumors macrumors bot


    Apr 12, 2001

    The latest proposed U.S. tariffs on $200 billion of Chinese goods name Apple Watch and other activity trackers assembled in China, according to government rulings. Reuters reports the latest rulings list names the original Apple Watch, Fitbit Charge, Charge HR and Surge models, and Sonos Play:3, Play:5 and SUB speakers.

    If the list goes into effect this fall following its public comment period, affected companies could face a 10 percent tariff and could consider passing the cost onto the consumer. However, Apple discontinued the original first-generation Apple Watch in September 2016 when it released the Apple Watch Series 1 and Apple Watch Series 2, so the proposed tariff makes little practicable difference to Apple.

    Nevertheless, while smartphones and computers have so far avoided the threat of import duties, the rulings show that technology companies aren't completely immune to the tariffs, which could end up hitting a range of smaller product lines.

    U.S. Customs and Border Patrol officials have decided the devices listed above fall under the subheading "data transmission machines", one of more than 6,000 codes in the most recent round of proposed tariffs released in early July.

    All three companies declined to comment on the proposed tariff list, but in its recent IPO filing, Sonos claimed that the imposition of tariffs and retaliatory trade measures could require it to raise prices.

    As for Apple, The New York Times recently reported that during a meeting in May, President Trump told CEO Tim Cook the U.S. government would not levy tariffs on iPhones assembled in China. No mention was made of other product categories, however.
    Apple includes the Apple Watch in its "Other Products" category in an effort to keep its competitors from getting a detailed look at its shipments, so research firms look for clues in Apple's earnings reports to estimate shipments.

    Bernstein analyst Toni Sacconaghi estimates that the Apple Watch will bring Apple $9.9 billion in sales this year, although that estimate includes sales outside the U.S. that wouldn't be affected by tariffs.

    Apple Watch saw its best quarter ever in Q1 2018, with the new Series 3 models selling at twice the volume of the Series 2 models last year. In his last earnings call, Tim Cook said Apple's wearables business - which includes AirPods, Beats, and Apple Watch - is the size of a "Fortune 300" company, with revenue up almost 50 percent.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues 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: Original Apple Watch Named, Current Models Omitted in Latest Proposed U.S. Tariffs on Chinese Goods
  2. christarp macrumors 6502


    Oct 29, 2013
    ah yes, the free "we will pick and choose what we make more expensive" market in action.
  3. JosephAW macrumors 68020


    May 14, 2012
    Do they still sell Series 0? I was hoping to get one at half price by now.
  4. Fall Under Cerulean Kites macrumors 6502

    Fall Under Cerulean Kites

    May 12, 2016
    From TFA:

  5. Blackstick macrumors 6502a


    Aug 11, 2014
    Sunny South Florida
    China knows that Watch is over and done.
  6. honglong1976 macrumors 65816


    Jul 12, 2008
    Hmm. Propose a tariff but only apply it to items which are no longer sold. Great! :)
  7. Koodauw macrumors 68040


    Nov 17, 2003
    Exactly its all posturing.
  8. alfonsog macrumors 6502


    Jul 17, 2002
    Cape Coral, FL
    Well, trump just said (after this article posted) that he’s ready to tariff everything from China. Bernie Sanders wanted the same thing. Make it cheaper to manufacture here and they will? Apple has factories in Brazil and India because of their tariffs.
  9. R.Youden macrumors 68020


    Apr 1, 2005
    But both India and Brazil have relatively cheap labor costs compared to the US.

    There is a difference between making something cheap to manufacture and something less expensive to manufacture.
  10. szw-mapple fan, Jul 20, 2018
    Last edited: Jul 23, 2018

    szw-mapple fan macrumors 65816

    szw-mapple fan

    Jul 28, 2012
    Taxing products like these is monumentally stupid because America makes much more money off these devices than China does through various American made components. Despite it being assembled in China and the entire phone/watch technically counting in the export value, much of the more expensive components are imported to China from the US, S Korea, and Japan. I believe China only profits around 8 dollars per phone in the case of iPhone.
  11. JPack macrumors 68040


    Mar 27, 2017
    It makes no economic or technical sense to manufacture in the U.S. The lack of technical skill in electronics design and manufacturing is the root cause.

    AirPods have minimal amounts of labor involved in manufacturing. If it could be done, Apple would be making AirPods in the U.S. However, Apple had to partner with Luxshare-ICT in China to develop and manufacture AirPods due to their expertise in small acoustic devices.

    Manufacturing in the U.S will simply slow down innovation.
  12. gnasher729 macrumors P6


    Nov 25, 2005
    Maybe Apple needs to import one original Apple Watch every month and pay 10% tariff to avoid suspicions (so nobody notices that Apple isn't actually importing these watches anymore).
  13. omihek macrumors 6502


    May 3, 2014
    Salt Lake City, UT
    I hope they name the Apple Newton. That thing is really causing a lot of financial trouble for all of us here in 2018.
  14. haruhiko macrumors 601


    Sep 29, 2009
    Trump is hurting America's economy in the name of nationalism.
  15. alphaod macrumors Core


    Feb 9, 2008
    Trump is so out of touch. I doubt he knows his daily expenses or what things anything costs these days. He just says I want this and let his financial team deal with it.
  16. Aston441 macrumors 65816

    Sep 16, 2014

    ... Uh... have you been watching the economic numbers?
  17. Morgenland macrumors 6502


    May 28, 2009
    Kind of Trump humor. Hard to bear.
    --- Post Merged, Jul 22, 2018 ---
    Trump, the tax collector.
  18. inscrewtable macrumors 68000


    Oct 9, 2010
    It would appear that Cook's hesitant cosying up to Trump has not been for nothing. Sort of a double negative.
  19. szw-mapple fan macrumors 65816

    szw-mapple fan

    Jul 28, 2012
    People who have been watching the numbers will see that the economy had been improving for years before Trump took office, and that most of the momentum from the past couple of years is carried over. Trump's economic and trade policies are not yet shown to be economically advantageous or damaging yet. They're simply too recent to have significant impact. There are already some signs of trouble ahead though, since the yield curve is flattening, suggesting a recession in a couple of years.

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