Proposed Tariffs Could Lead to 14% Increase in U.S. iPhone Prices

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, May 14, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    While U.S. tariffs on Apple's chargers and cases are already at 25 percent, the company's main products like the iPhone have so far escaped the extra taxes. That may soon change, however, as the Office of the U.S. Trade Representative has begun the approval process to subject an additional $300 billion in Chinese-made products, including iPhones, to tariffs that could go into effect in late June.

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    The proposed tariffs are largely a bargaining chip and could end up being avoided if deals can be struck between the Trump administration and the Chinese government, but if the tariffs were to take effect, their impact on Apple's business would be substantial. Analysts cited by CNBC outline Apple's options, with J.P. Morgan estimating that the tariffs would be equivalent an estimated 14 percent increase in the retail price of an iPhone XS, pushing the cost from $999 to $1,142.
    There are a variety of ways that impact could be handled, including price increases for consumers, Apple absorbing the tariffs, suppliers helping absorb the tariffs by cutting the prices they charge Apple, or some combination of those possibilities.

    Looking further down the road, some have suggested Apple could move iPhone production out of China in order to avoid tariffs, either to other countries in the region or to the United States. Such a move would require massive investment and take a substantial amount of time, however, and Bank of America Merrill Lynch estimates that iPhone prices would have to increase by around 20 percent if production was moved to the U.S.
    Apple's stock is down about 10 percent over the past two weeks as concerns over the Chinese trade dispute have roiled the markets in general and Apple in particular. Yesterday's Supreme Court ruling that allowed a lawsuit claiming Apple has monopolized the retail app market with the App Store to proceed also appears to have contributed to the recent drop in Apple's stock price.

    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: Proposed Tariffs Could Lead to 14% Increase in U.S. iPhone Prices
     
  2. chrono1081 macrumors 604

    chrono1081

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  3. atomic.flip macrumors regular

    atomic.flip

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    #3
    So now instead of a 40% Apple standard increase in price, we will have a 54% increase. Lovely
     
  4. AngerDanger macrumors 601

    AngerDanger

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    #4
    Excellent news for those of us worried about Apple's rock-bottom prices.
     
  5. jkcerda macrumors 6502a

    jkcerda

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    #5
    plenty of iphones are in the 1k area, for that price they should be built in the U.S.
     
  6. macduke macrumors G4

    macduke

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    #7
    The economy is doing great!

    Everybody:

    President: Hold my beer.



    The greed is out of control.
     
  7. Achillias macrumors 6502

    Achillias

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    #8
    Now the Americans are going to feel what the Europeans have to deal with on the iPhone ridiculous price scheme.
     
  8. ZacNicholson macrumors 6502a

    ZacNicholson

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    #9
    Still better than having our IP stolen/ripped off.
     
  9. thasan macrumors 65816

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    #10
    that dumb guy at the white house didnt take into account of another very important aspect. Chinese people are already starting to boycott US tech products. There is a huge anti US sentiment running in the country now. This will never change back even if a deal is struck.
     
  10. cube Suspended

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    #11
    You want ridiculous? Go to Brazil.
     
  11. chfilm macrumors 68000

    chfilm

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    #12
    Congrats! Let’s see if the American people will vote for him again...
     
  12. decypher44 macrumors 6502a

    decypher44

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    #13
    Or, Apple may realize the prices are already astronomical (yes, I bought a Max anyway). If they want unit sales to stay flat or increase, they’ll have to eat the cost of any tariff. That, and they *could* build the phones here in the US, but we all know that’s not gonna happen. Maybe for the Mac Pro, but that’s about it.
     
  13. Unity451 macrumors 6502

    Unity451

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    #14
    Oh good! I just got a 2% raise at work, and I was wondering how I was going to spend my newfound wealth.
     
  14. scrapesleon macrumors 6502a

    scrapesleon

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    #15
    Like the prices weren’t high enough already
     
  15. thasan macrumors 65816

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    #16
    Polite question: Have you been to Shenzhen in recent years? They (and whole of china) are innovating. Faster (and better in many cases) than anyone else on the earth. Pumping huge amount of cash in research and tech development. Most of the leading US professors of fundamental physics, optics, materials science are originally Chinese... lol. Check leading Science/Nature publications.
    The arrogance of the west will be the reason for its demise.
     
  16. MyMacintosh macrumors 6502

    MyMacintosh

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    #17
    Not surprised. Regardless, i'm not buying any more iPhones with ANY price increases of any kind.
     
  17. ZacNicholson macrumors 6502a

    ZacNicholson

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    #18

    Yes, I lived in China last year in the Tianjin/PEK area. Went to Shenzhen many times
     
  18. alexandr macrumors 6502a

    alexandr

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    #19
    and what are the europeans going to feel? :)
     
  19. jkcerda macrumors 6502a

    jkcerda

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    #20
    the economy IS doing great. greed is out of control? how much does apple pay for the phones using slave like labor?
     
  20. Kaibelf Suspended

    Kaibelf

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    #21
    Why, exactly? The whole purpose of a business is to maximize profit. It's not community service, patriotism, or platitudes. Also, Apple's stock, which benefits from those profits, are widely held by millions of taxpayers in their 401k and IRAs. Why should they pay to falsely prop up failing factories?
    --- Post Merged, May 14, 2019 ---
    The people working at Foxconn are able to leave if they choose. They were not forced to work there by their government, and were not kidnapped and brought there. Saying it's "slave labor" to make smartphones insults the people who are REALLY enslaved in this world.
     
  21. Achillias macrumors 6502

    Achillias

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    #22
    Just look at the title and you will have your answer on that.
     
  22. metalsiren macrumors 6502

    metalsiren

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    #23
    sorry if they go up that much I am out, I will hold on to my XS Max until it dies.
     
  23. alexandr macrumors 6502a

    alexandr

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  24. cube Suspended

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    #25
    The answer is "Schadenfreude".
     

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