Trump’s metal tariff will not affect Apple (or any other smartphone factory), then, even if it causes significant disturbances in the cost of aluminum and steel in general. But the 10 % definitions on the Chinese goods announced by Trump earlier Be able to It has a direct effect on the price you pay.
About 80 percent of the world is made in China, and while Apple has transported some of its manufacture and assembly to India, millions of iPhone devices are still produced by Foxconn in factory in Shenzhen and Zhengzhou.
Definitions of 10 percent, as they are, will Apply to these phones. According to the Consumer Technology Association (CTA), it is the American public who will end up to pay the price.
“Definitions are taxes on American consumers, not foreign governments or companies. Gary Shapiro, CEO of CTA, who is behind the annual Ces Tech Trade exhibition.
“Definitions are tools for resolving commercial conflicts – not for political cards to bargain for issues such as migration or drug control.”
Perhaps this explains the reason for the Apple share price Decline After three percent of the officially announced China’s tariff. But even with these definitions at the present time, it did not cause a 10 percent increase in the US iPhone. According to analysts, it may not even lead to a 10 percent jump in September when new iPhone devices are also announced.
“The 10 percent increase for the consumer will be a solid pill for swallowing in an economy still. Nabila Bubal, chief research manager at IDC at Market Intelligence IDC:“ It is completely likely that 10 percent will not be transferred to the final consumer or negotiates it at that time”.
“Although China’s tariff is” stuck “so far, it is also possible that the situation will change by that time. Especially with Trump, anything can change at any time.”
These definitions are a starting point for negotiations are something that Apple knows. The company granted many customs tariff exemptions during the first period of Trump, so that Tim Cook sent Trump to Mac Pro at a value of $ 6000 after giving up the fees of importing costs added to line components. This may help clarify the reason for the appearance of Cook at the opening this time, or why donated a million dollars to the Trump opening fund.
“Apple, and other technology giants are closely with the US government to exclude special exceptions,” Pope says. “We have already seen Trump giving Apple exceptions from China’s tariff in the past, so I will not be surprised if that happens again.”
Made in the United States?
Of course, Trump’s public discourse on the definitions is that, in part of it, an attempt to stimulate the American local industry. Phones may be small potatoes in the broader metal industry, but can this tariff – and definitions like them – on iPhone, and other smartphones, can be made in the United States of America?
A somewhat lazy answer to this is that it will cost the price several times, thanks to the Upper American wages – prices do not simply want consumers to pay.