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Other Will you still buy an iPhone after tariffs?
- Thread starter janeauburn
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While I’m in the camp of picking up a badly needed device now before the tariffs kick in on April 9th, it is still true that devices in this country already will likely escape most of the price hikes. Moreover, it’s likely the worst effects of the tariffs will be mitigated (but not eliminated) by a combination of Apple taking a bit of a hit and the carriers taking a bit of a hit.
For those with their one-dimensional views that evil Apple will never give up a cent… understand this company knows what it’s doing. They know how far they can go with prices and will probably take a hit if they are convinced the tariffs will not last for very long.
That said, if one doesn’t really need a new device now, I would just wait.
For those with their one-dimensional views that evil Apple will never give up a cent… understand this company knows what it’s doing. They know how far they can go with prices and will probably take a hit if they are convinced the tariffs will not last for very long.
That said, if one doesn’t really need a new device now, I would just wait.
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Doubt the tariffs will stick long term. Can already see the headlines of Trump has negotiated the best or greatest deal ever for the American people and tariffs will be reduced.
Either way I always do a multi year contract so my phone comes out to $100 to $200 with my cellular provider and this year I am up for an upgrade which I plan to do.
Either way I always do a multi year contract so my phone comes out to $100 to $200 with my cellular provider and this year I am up for an upgrade which I plan to do.
I don't mind paying a little more if there are important features that really intrigue me. As long as the value is there, I can justify a small increase in price. Having said that, I think small consumer electronics in general are going to be the hardest hit by the tariffs. Smart phones, laptops, desktop computers, cameras, speakers, blu-ray players and TV's are going to go up in price, since almost all of those items are imported into the US.
The thing is people are going to adjust their spending habits, just as they do in a recession, which is likely where we are headed. People who might buy a new TV every year, such as videophiles, will skip a year and buy every two years.
Companies that already live on very tight margins in ultra competitive markets will have to adjust productions lines, produce less, shut down some factories, all of the things that happened during co-vid we will likely see happening again with the tariffs.
Apple will not be immune to these changes. Apple will have to scale back production of their iPhones and computers. That means closing factories and importing less phones and Mac's into the US. That in and of itself will raise prices. It's not just tariffs that are going to lead to increases in pricing, it's simple supply and demand. As demand for new iPhones and Mac's increases, but supply becomes constrained, the price will have to go up, that is again irrespective of whatever Apple has to pay out of pocket to import their goods into the country.
It's not just poor people that will not be able to afford a new phone or computer that are going to be affected, even rich people that have the money and want to buy the latest phone or Mac Pro, for example, may find inventory lacking and may have to wait months before they even receive their new I-device.
We could, depending on how long these tariffs are in effect and the damages they do to the global supply chain, see a situation where a person places an order for a new MBA and has to wait months before it ships. Not to mention whatever they have to pay for it.
Things are going to get very interesting, very fast here in America.
The thing is people are going to adjust their spending habits, just as they do in a recession, which is likely where we are headed. People who might buy a new TV every year, such as videophiles, will skip a year and buy every two years.
Companies that already live on very tight margins in ultra competitive markets will have to adjust productions lines, produce less, shut down some factories, all of the things that happened during co-vid we will likely see happening again with the tariffs.
Apple will not be immune to these changes. Apple will have to scale back production of their iPhones and computers. That means closing factories and importing less phones and Mac's into the US. That in and of itself will raise prices. It's not just tariffs that are going to lead to increases in pricing, it's simple supply and demand. As demand for new iPhones and Mac's increases, but supply becomes constrained, the price will have to go up, that is again irrespective of whatever Apple has to pay out of pocket to import their goods into the country.
It's not just poor people that will not be able to afford a new phone or computer that are going to be affected, even rich people that have the money and want to buy the latest phone or Mac Pro, for example, may find inventory lacking and may have to wait months before they even receive their new I-device.
We could, depending on how long these tariffs are in effect and the damages they do to the global supply chain, see a situation where a person places an order for a new MBA and has to wait months before it ships. Not to mention whatever they have to pay for it.
Things are going to get very interesting, very fast here in America.
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That is actually what many people are thinking is going to happen. Trump is just playing games with our largest trading partners. He makes them sweat and then like the "brilliant" business man he thinks he is, he calls them up at the last minute and says "let's negotiate a new trade deal".
Then he gets to count that as a win, while stroking his ego.
Where did they get this 54 percent increase from? Yes, Trump put a 34 percent tariff on China on top of the 20 percent from March, but that doesn't mean prices will go up 54 percent because
(1) Not all iPhones come from China
(2) Some of the tariffs can be absorbed by companies up and down the supply chain -- from component makers such as Broadcom, Sony, Samsung, Micron, Taiwan Semiconductor, and Jabil to the little company making the screws or packaging -- not to mention by Apple, Foxconn, and even your phone carrier or retailer you buy it from. If they all don't cooperate and try to work together to keep costs down where they can, a lost sale would be much worse for them than a smaller profit margin.
Their math is $549.73 x 54 percent China tariff = $846.59 (new total)? 😂
They're assuming all iPhones come from China (they don't) and none of the companies will eat some of the costs from the tariffs (they will).
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however much tariff they pay to import a phone to the United States is how much more the phone will cost in the United States than it does now
and that will be much more than 100-150
the tariff applies when the phone enters the United States and is paid by whoever is importing the phone, in this case apple, there's no way for any of it to be "absorbed up and down the supply chain
so an iphone coming from china will cost 54% more than it otherwise would
Something isn't adding up (actually a lot of things aren't adding up).
Apple has announced it will invest $500 billion in the US. Trump even quoted it in the preamble to his tariff announcement.
Quite simply, if that doesn't provide some sort of tariff relief for Apple, then Apple can choose to invest (at least some of it) elsewhere. From that perspective, Apple might hold more cards than, say, Samsung.
Now, compare this to cameras. Nearly all high end cameras (Sony, Canon, Fuji, Panasonic, Nikon) are made in Asia. Just for the economies of scale, (let alone CAPEX and Labor) it makes no sense for any of them to invest in redundant manufacturing in the USA. Therefore, one simple conference call among CEOs can assure everyone to shrug and just let Americans pay the same tariffs across all the brands. It will probably depress overall sales for a bit...but equally across all brands.
So if you plan to purchase a camera (or lens, or anything else that is a similar category), you may wish to consider that before an iPhone.
Apple has announced it will invest $500 billion in the US. Trump even quoted it in the preamble to his tariff announcement.
Quite simply, if that doesn't provide some sort of tariff relief for Apple, then Apple can choose to invest (at least some of it) elsewhere. From that perspective, Apple might hold more cards than, say, Samsung.
Now, compare this to cameras. Nearly all high end cameras (Sony, Canon, Fuji, Panasonic, Nikon) are made in Asia. Just for the economies of scale, (let alone CAPEX and Labor) it makes no sense for any of them to invest in redundant manufacturing in the USA. Therefore, one simple conference call among CEOs can assure everyone to shrug and just let Americans pay the same tariffs across all the brands. It will probably depress overall sales for a bit...but equally across all brands.
So if you plan to purchase a camera (or lens, or anything else that is a similar category), you may wish to consider that before an iPhone.
Repairs need parts, parts are not made in America, so they will likely go up in price anyway.
Sigh!
You don't think Apple will speak with all their suppliers to see where costs can be cut? Walmart is already doing it
April 1 (Reuters) - U.S. retailing giant Walmart is continuing to push Chinese suppliers to cut prices to offset President Donald Trump's tariffs, Bloomberg News reported on Tuesday, citing people familiar with the matter.
So are Costco and Target
March 18 (Reuters) - Costco Wholesale is pressuring mainland China suppliers to cut prices in response to U.S. tariffs, The Financial Times reported on Tuesday, citing two suppliers.
Costco's Chief Executive Officer Ron Vachris had said that the company would consider modifying its international supply chain if tariffs result in significant price increases, during their quarterly earnings call earlier this month.
You want me to believe Apple won't do the same thing? That's what I mean by everyone up and down the supply chain cooperating and working together to absorb some of the tariffs. The threat of Apple using a different supplier or huge loss of sales for Apple's component suppliers would be a strong motivator for them to reduce component prices.
Sticking with my 15 Pro as I’m disliking how much thicker and heavier the phones are getting year after year. This just makes it so much easier to do.
Over exaggerating much? Where are you getting these figures? How did you go from $999 to $2300? That’s more than 100% increase
There are no tariffs on electronics right now in the EU. Also, iPhones don't come from the US.
I am phasing out as much American as I can. Bye-bye Heinz, Coca-Cola, Kellogg’s, Netflix and Disney. Although I prefer these brands, there are acceptable alternatives. Visa and MasterCard are a bit tougher, but I use alternative methods where they’re available.
Apple is much more important to me, and has been for 30 years. I wouldn’t mind the price hike, but it is a US company and therefore on my ********.
I’ll probably just avoid buying anything new for the next few years, and see what happens. I need to figure out what to do about services though, giving up my 2 TB iCloud Drive is not something I am looking forward to, and I finally just finished migrating all my domains and e-mail from various providers to iCloud. 🤬
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I doubt many would pay any amount for a foldable phone. Seriously, that is a price point for many Americans in which it has to stop. Apple has done a great job to hold prices, but 25% more would make me hold on to my phone for a year or two longer.
You don’t think that all of these companies have already squeezed out every efficiency that they possibly can in order to maximize profits?
That’s exactly what I did, picking up a Nikon Z5II on preorder and two lenses before the April 9th deadline. Nikon guru Thom Hogan has some additional words on that front:
More on the Tariff Situation | Cameras and Photography Explained | Thom Hogan
Further information about how the Trump tariffs are likely to impact the camera business
If you are willing to try European alternatives, you could try a Swiss iCloud alternative called kDrive. These guys offer 3 TB for 5.54€ + VAT, so for around 6.64€ per month, if the VAT is 20%. This is versus Apple’s 9.99€ for 2 TB, so not bad at all.
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