Proposed Tariffs Will Impact Apple Watch, AirPods, HomePod, Mac Mini and More

[MacRumors]

A proposed $200 billion tariff on Chinese goods would affect the Apple Watch, AirPods, HomePod, Beats headphones, AirPort routers, Apple Pencil, Magic Mouse and Magic Keyboard, MacBooks, Mac mini, and a selection of cables, chargers, and adapters, Apple said today in a letter sent to the U.S. government.

Apple's letter urges the Trump administration not to apply the tariffs that will affect Apple products and to find "other, more effective" solutions instead. According to the company, the U.S. will be the hardest hit by the proposed tariffs, leading to lower U.S. growth and competitiveness and higher prices for U.S. consumers.

Apple CEO Tim Cook with Donald Trump at the Executive Tech Summit at Trump Tower in December 2016​

The proposed tariff list covers a wide range of Apple products and the products used in our U.S. operations: Apple digital health and wireless connectivity products, including Apple Watch, Apple Pencil and Air Pods; Apple computing tools such as MacMini; Apple adapters, cables and chargers engineered for efficiency and safety; Apple-designed components and made-to-specification tooling for Apple's U.S. manufacturing and product repair facilities; specialty testing equipment for Apple's U.S. product development labs; and servers, hard drives and cables for Apple's U.S. data centers that support our global services such as the App Store.

According to Apple, the tariffs will increase the cost of its U.S. operations, divert resources, and disadvantage Apple compared to foreign competitors, leading to more expensive Apple products for customers.

Second, because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives. For example, the proposed tariffs cover Apple Watch, which has become the top-selling smart-watch in the U.S. and globally.

Since we introduced Apple Watch a few years ago, we have heard from users about how it has changed, and in some cases saved, their lives. Apple Watch is also being used in conjunction with American universities to help individuals to manage health conditions such as epilepsy and post-heart attack recovery.

Apple CEO Tim Cook said in July that Apple was evaluating the fourth tariff the United States plans to implement and would comment on its impact on Apple at a later date, which is what today's letter pertains to. Cook called the examination of the tariff "a tedious process" because of the need to consider not only revenue, but also purchases being made through other companies unrelated to revenue, such as data centers.

The United States has already put three sets of tariffs in place affecting steel, aluminum, and $50 billion worth of other goods from China, but none of these tariffs have impacted Apple products and devices.

When commenting on tariffs in July, Cook said that while Apple believes the trade agreements the U.S. has with other major economies are in need of modernization, tariffs are not the right approach. Cook said Apple is, however, "optimistic" the tariff issue will be sorted out, and that the company is hoping "calm heads prevail."

Apple shares dropped following the tariff news.

Apple's Comments Regard... by http://undefined#from_embed on Scribd​

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Article Link: Proposed Tariffs Will Impact Apple Watch, AirPods, HomePod, Mac Mini and More

 

[jimbobb24]

Tariffs may be useful as a negotiating tactic, but long term just foolish. They often just put money in the hands of powerful corporations or lobbies- the best example being sugar. Lets hope they are brief and result in more free trade deals.

 

[dontworry]

>AirPort routers

not anymore

 

[PotatoLeekSoup]

Nothing burger. "Proposed" = negotiation tool. Let the stock drop and buy in.

 

[Huntn]

Does not really work as a meditation mantra, but good for survival rallies:
Get rid of Trump!!
Show him the door!
Energize!

 

[Appleaker]

Tim Cook must be really distressed by the thought that Apple will only make $40 per dongle instead of $45.

In all seriousness, Apple under Tim Cook will pass this onto the customer so hopefully it is just a negation tool towards a better trade deal.

 

[Rocketman]

I imported a Chinese piece of equipment on 3 July 2018. It did not clear customs till 20 Sep 2018. Trump tariffs were instituted 1 Sep 2018. Customs takes about a week to clear if it is slow. They charged me $1928 on purpose. I was Trumped.

 

[critter13]

he said MacMini

 

[gaximus]

This will just get passed on to the customer. For all companies that the tariffs affect.

 

[critter13]

he said MacMini

 

[JPack]

You guys must be tired of winning by now.

 

[SeattleMoose]

I support the POTUS on this issue. And will pay the delta cost without whining.

 

[anshuvorty]

A proposed $200 billion tariff on Chinese goods would affect the Apple Watch, AirPods, HomePod, AirPort routers, Apple Pencil, Mac mini, and a selection of cables and adapters, Apple said today in a letter sent to the U.S. government.

This might sound like a stupid question but why isn't the iPhone on this list of affected goods? Isn't the iPhone manufactured in China like the rest of these products?

Thanks!

 

[TheShadowKnows!]

This will just get passed on to the customer. For all companies that the tariffs affect.

Plus the magical 30% Apple Tax, cherry on top.
[Bin counters will never, ever, pass-on cost without margin tagged-on.]

 

[macduke]

It may be cold comfort in this chaotic era, but Americans should know that there are adults in the room. We fully recognize what is happening. And we are trying to do what’s right even when Donald Trump won’t.

The Lodestar Resistance needs to get their crap together and fix this mess.

 

[zombierunner]

Anyone notice the Airpods video on Apple's youtube page has been taken down.

 

[gaximus]

Plus the magical 30% Apple Tax, cherry on top.
[Bin counters will never, ever, pass-on cost without margin tagged-on.]

And they shouldn't, if your building a product, and the price of the materials go up, you need to raise your prices, and not just by the price of the increase, but by the percentage of the price increase, to keep up with inflation.

 

[DeepIn2U]

This might sound like a stupid question but why isn't the iPhone on this list of affected goods? Isn't the iPhone manufactured in China like the rest of these products?

Thanks!

maybe because there are various levels of government that use iPhones? Budgets are pretty strict so increasing in pricing during contractual agreements with service providers (carriers) would not go too well. iPhone get's excepted form Tarrifs

not likely.

 

[supercoolmanchu]

I imported a Chinese piece of equipment on 3 July 2018. It did not clear customs till 20 Sep 2018. Trump tariffs were instituted 1 Sep 2018. Customs takes about a week to clear if it is slow. They charged me $1928 on purpose. I was Trumped.

Well imagine on the other side in China, having to buy from the USA, then getting clobbered on tariffs from the Chinese government.

 

[djcerla]

Only 2 years, 4 months, 13 days, 11 hours, 41 minutes left.

 

[DBZmusicboy01]

Anyone notice the Airpods video on Apple's youtube page has been taken down.

was it a new airpods model?

 

[tipoo]

Tariffs may be useful as a negotiating tactic, but long term just foolish. They often just put money in the hands of powerful corporations or lobbies- the best example being sugar. Lets hope they are brief and result in more free trade deals.

Pretty well what I think. If it pressures China to drop their trade barriers, ok, a bit of short term pain is tolerable. But adding these tariffs with no plan to remove them longer term would be really dumb.

 

[bbeagle]

Tim Cook must be really distressed by the thought that Apple will only make $40 per dongle instead of $45.

In all seriousness, Apple under Tim Cook will pass this onto the customer so hopefully it is just a negation tool towards a better trade deal.

EVERY company will increase the price of their products relative to the tariff.

The only losers are the American people.

The idea of a tariff is to increase the price of foreign imported items so that American companies can compete. It works for very similarly priced products, but because manufacturing is so much cheaper in China, the prices are just too far out of whack.

For example, if I want to buy an American-made plastic chair, I'll pay $30. The same Chinese-made plastic chair is $5. After the tariff, the Chinese-made plastic chair will be $7. This won't influence any people to buy the American-made version, it will just take $2 out of everyone's pockets.

 

[Rogifan]

Tim Cook must be really distressed by the thought that Apple will only make $40 per dongle instead of $45.

In all seriousness, Apple under Tim Cook will pass this onto the customer so hopefully it is just a negation tool towards a better trade deal.

Every company passes higher taxes on to consumers. It’s why higher taxes are dumb.

 

[supercoolmanchu]

Plus the magical 30% Apple Tax, cherry on top.
[Bin counters will never, ever, pass-on cost without margin tagged-on.]

It’s like there’s this thing called business, and you have no idea how it even works, but instead have this inherent bias that making money is evil and use that as your default view filter.

Which I guess is cool, but that kinda moralizing was worn rather thin by most religions over thousands of years, not sure why it needs to be re-adopted for the f@#*$%! computer biz.