According to Apple is likely to take a multi-dimensional approach to manage the effect of adjacent tariffs on its products, BloombergMark gurmanThe company is facing challenges, as new tariffs will not only affect China-based production, but are also included in many countries.
The upcoming tariffs range from 20% to 46% in Apple’s global manufacturing hub. India, where Apple creates rapid iPhones and airpods, will face 26% tariffs. Vietnam, which produces airpods, ipads, apple watches and Macs, will be hit with 46% levy. Malaysia, Thailand, Indonesia and even Ireland will face tariffs between 20% to 37%.
Gurman believes that Apple will pursue a joint strategy to reduce these effects. First, he says that the company will pressurize its constituent suppliers and manufacturing partners to reduce prices. Second, Apple can absorb a portion of increased costs, eating in your specific hardware profit margin of about 45%.
Third, and perhaps for consumers, most, apple iPhone can consider the price adjustment. The company has already implemented the price increase in other markets in response to tax policies, currency ups and inflation. “I hope Apple will seriously consider the iPhone price adjustment,” Gurman writes. “It helps consumers probably heard of the factors outside here and will not see it as cash grab.”
Finally, Apple will probably accelerate its supply chain diversification efforts. Although the company will not be able to move rapid production in the United States, it may prioritize shipment from low tariff rate countries, such as rooting more iPhone than India rather than China.
Apple has been stocking inventory in the US for months in anticipation of Tariff, which can delay the price hike until the iPhone 17 is launched in September. Already units in the US are exempted from tariffs, which are officially effective on 9 April.
Apple CEO Tim Cook’s efforts to have an attempts to have a relationship with Trump, the company has not yet been able to achieve discounts, including a $ 500 billion pledge in the next four years.
For consumers, wondering if they have to pay more for an iPhone for this decline, Gurman suggests whether the Apple may be more aggressive with trade-in special and installment plans to offset the possible price increase, or possibly revive its already assumed hardware membership service.
Apple has not yet commented on proceeding on tariffs or its plans, but the company is definitely working behind the curtain to calculate their impact.
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