Trump Tariffs Could Drive Up iPhone Price
The trade dispute between the United States and China is getting tougher, and a White House analyst has hinted that tariffs could affect the iPhone.
In January, we predicted that the tariffs proposed by Trump for Chinese imports could increase the price of their equipment. Yesterday, however, a New York Times report said the Trump administration will not charge tariffs for China-mounted iPhones.
But today, Peter Navarro, White House Advisor and Director of the White House National Trade Council, told CNBC that he does not know about iPhone exemption. to the Chinese tariffs. This raises doubts about previous reports and means that Apple could again get into trouble.
It is difficult to know exactly how such a tariff would affect consumer prices. Navarro estimates that the ten-percent-inch level (from the recent White House statement) will not have a significant impact on the price for consumers. However, Apple has a large Chinese consumer base and production infrastructure, and Tim Cook's efforts to avoid such action by the authorities indicate that they could have significant consequences for the company.
Apple has 41 stores in China and has sold hundreds of millions of iPhones. This is a small amount compared to its presence in some countries (Apple has opened 272 retail stores in the US since May 2001), but still consolidates Apple as an important technology player.
While Apple's sales declined this year, the company remains the fifth-largest smartphone maker in the region, losing only to domestic players like Huawei, Vivo, Oppo and Xiaomi. And Apple's business in China generates annual revenues of about $ 50 billion a year, nearly a quarter of what the company absorbs globally.
Last month, Apple's CEO visited the White House to warn the president that his trade war could jeopardize Apple's business in the region. And in March, he called, according to the Times, "quieter heads" between the two countries.
And even if the rate does not significantly affect Apple's results, the company still fears the trade war is doing so. The Times also said that anonymous sources close to Apple say the company fears that China "will respond in a way that paralyzes its business." For example, a closer look at the Chinese government could also increase the time and resources needed to make an iPhone.
In January, we predicted that the tariffs proposed by Trump for Chinese imports could increase the price of their equipment. Yesterday, however, a New York Times report said the Trump administration will not charge tariffs for China-mounted iPhones.
But today, Peter Navarro, White House Advisor and Director of the White House National Trade Council, told CNBC that he does not know about iPhone exemption. to the Chinese tariffs. This raises doubts about previous reports and means that Apple could again get into trouble.
It is difficult to know exactly how such a tariff would affect consumer prices. Navarro estimates that the ten-percent-inch level (from the recent White House statement) will not have a significant impact on the price for consumers. However, Apple has a large Chinese consumer base and production infrastructure, and Tim Cook's efforts to avoid such action by the authorities indicate that they could have significant consequences for the company.
Apple has 41 stores in China and has sold hundreds of millions of iPhones. This is a small amount compared to its presence in some countries (Apple has opened 272 retail stores in the US since May 2001), but still consolidates Apple as an important technology player.
While Apple's sales declined this year, the company remains the fifth-largest smartphone maker in the region, losing only to domestic players like Huawei, Vivo, Oppo and Xiaomi. And Apple's business in China generates annual revenues of about $ 50 billion a year, nearly a quarter of what the company absorbs globally.
Last month, Apple's CEO visited the White House to warn the president that his trade war could jeopardize Apple's business in the region. And in March, he called, according to the Times, "quieter heads" between the two countries.
And even if the rate does not significantly affect Apple's results, the company still fears the trade war is doing so. The Times also said that anonymous sources close to Apple say the company fears that China "will respond in a way that paralyzes its business." For example, a closer look at the Chinese government could also increase the time and resources needed to make an iPhone.
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