Apple chargers and cases subject to US tariff increase

Posted:
in iPhone edited May 14
Apple's chargers and iPhone and iPad cases have so far been subject to tariffs on Chinese imports without affecting U.S. buyers, but that could be about to change.

iPhone XR and XS cases


Official prices for those accessories haven't moved since before 10% tariffs went into effect in September 2018, The Verge noted. Higher-profile Apple products like iPhones, AirPods and the Apple Watch were made exempt.

The tariffs that do affect Apple rose to 25% on Friday after U.S. President Donald Trump made good on a negotiation deadline. Some reports have claimed that China backtracked on earlier promises, and U.S. negotiators have been unwilling to budge on issues like intellectual property rules.

China retaliated on Monday by announcing hiked tariffs on $60 billion in U.S. goods, set to take effect June 1. Rates will range from 5% to 25%, the latter on products like natural gas, petrochemicals, soy oil, and peanut oil.

While Apple is thought to have high profit margins on accessories -- third-party options are often much cheaper -- it's uncertain how deep a cut to those margins it might be willing to accept. To offset the situation it may be able to secure discounts from suppliers, or even shift manufacturing outside of China, but the second option would likely be costly and time-consuming.

Apple partners Foxconn and Pegatron are working on building iPhones in India, though the scale of Indian operations is unlikely to reach Chinese levels in the near future.

Apple in September issued a letter to U.S. Trade Representative Robert Lighthizer, warning a then-proposed tariff hike would ultimately result in higher prices for U.S. consumers.

«1

Comments

  • Reply 1 of 30
    apple ][apple ][ Posts: 8,581member
    Hit 'em ever harder is my opinion. We're not playing hardball yet, merely softball.

    The IP rights is one of the most important issues and of course the US should not budge a single inch on it.

    Who wants to agree to a deal where you agree to allow the other party to continue to steal from you?

    Whatever tariffs China introduced recently, let's double that and hit 'em again.

    Small items like cases or chargers are not a big deal in my opinion. If the average consumer has to pay a little bit more for a few accessories, then it's worth it, because the long term goal is much more important than anything that will happen in the short term.
    macseekeranantksundaramviclauyycbigtdsjbdragonmagman1979repressthislkruppLordeHawkHyperhydra
  • Reply 2 of 30
    bsimpsenbsimpsen Posts: 272member
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    avon b7tyler82lolliverbaconstang
  • Reply 3 of 30
    tyler82tyler82 Posts: 836member
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.

    Apple has always been more expensive than Samsung. 

    My whole life I’ve had the option of buying much cheaper computers, phones, and electronics. But I never did. 
    JFC_PAmagman1979repressthis
  • Reply 4 of 30
    tedz98tedz98 Posts: 16member
    Apple has been shortsighted for many years, manufacturing the vast majority of its devices in China. Some might say they were driven by greed.  China production costs are so low it was easy to keep expanding manufacturing there. But Tim Cook, the uber-supply chain expert should have seen the mess they were creating relying exclusively on Chinese production for their highest revenue products.  Imagine if there ever was a war with China? That would terminate Apple production.  Rather than focusing on how thin and beautiful Apple products are, Tim and company had better move quickly on diverse production sites. Including manufacturing in the USA.  There’s no reason Macs can’t be produced in the US with highly advanced robotics at a cost similar to Chinese production. Apple has been driven too much by quarterly Wall Street numbers. They need to get strategic about manufacturing. And fast!!
    tyler82elijahgelectrosoftHyperhydraEric_in_CTLatko
  • Reply 5 of 30
    viclauyycviclauyyc Posts: 347member

    As a Chinese who live in Canada and hate the Commie as much as anyone. I think US should hit harder on the trade deals. It is unfortunate that the rest of the world don’t join this fight, especially EU and Japan. Cause they all suffer the same unfair treatment as all international company in China. 
    Dont get me wrong, I am not a trump supporters and never will. I against most of the things he said and done. But this trade deal if it works will put his name on history.
    edited May 13 magman1979repressthisLordeHawkHyperhydra
  • Reply 6 of 30
    tzeshantzeshan Posts: 1,945member
    apple ][ said:
    Hit 'em ever harder is my opinion. We're not playing hardball yet, merely softball.

    The IP rights is one of the most important issues and of course the US should not budge a single inch on it.

    Who wants to agree to a deal where you agree to allow the other party to continue to steal from you?

    Whatever tariffs China introduced recently, let's double that and hit 'em again.

    Small items like cases or chargers are not a big deal in my opinion. If the average consumer has to pay a little bit more for a few accessories, then it's worth it, because the long term goal is much more important than anything that will happen in the short term.
    Wrong! The US deal does not allow stealing of IP. 
    baconstang
  • Reply 7 of 30
    tzeshantzeshan Posts: 1,945member

    tedz98 said:
    Apple has been shortsighted for many years, manufacturing the vast majority of its devices in China. Some might say they were driven by greed.  China production costs are so low it was easy to keep expanding manufacturing there. But Tim Cook, the uber-supply chain expert should have seen the mess they were creating relying exclusively on Chinese production for their highest revenue products.  Imagine if there ever was a war with China? That would terminate Apple production.  Rather than focusing on how thin and beautiful Apple products are, Tim and company had better move quickly on diverse production sites. Including manufacturing in the USA.  There’s no reason Macs can’t be produced in the US with highly advanced robotics at a cost similar to Chinese production. Apple has been driven too much by quarterly Wall Street numbers. They need to get strategic about manufacturing. And fast!!
    Wrong! Apple contracted out manufacturing to Foxconn. Foxconn decided to build iPhone in China not Apple. 
    lolliverbaconstanggareth2210
  • Reply 8 of 30
    jbdragonjbdragon Posts: 2,078member
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Samsung has a lot of phones made in China also. In fact most Android phones sold are made in China. Overall this is not going to have that much of a effect. It's going to hurt China far more than the U.S. We've been getting screwed over for YEARS and YEARS and no one was wiling to do anything and our jobs all fled to China along with everything else while they have tariffs on U.S. made products and letting them get away with this completely unfair trade.

    So we end up with some higher prices. Those cases, what is a it, a few cents to the normal price? I know what I do already when taxes get jacked up higher, I live in California where we have high taxes. I just cut my spending down. I buy a new iPhone every 4 years. I have the XS now and so I won't be getting a new iPhone until 2022. If other other countries had some guts. I guess they want to continue getting screwed by China. China will blink first. They ship and sell far, far more goods to the U.S. than the other way around. A lot of that is the tariffs the Chinese people pay for U.S. Imports. All that has to happen is things be far ore FAIR and equal, and the Tariffs will disappear.

    By the way, Before American's were getting their money stolen in the form of TAXES. The U.S. Government used to run and pay for it's self from Tariffs.
    edited May 13
  • Reply 9 of 30
    tzeshantzeshan Posts: 1,945member
    jbdragon said:
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Samsung has a lot of phones made in China also. In fact most Android phones sold are made in China. Overall this is not going to have that much of a effect. It's going to hurt China far more than the U.S. We've been getting screwed over for YEARS and YEARS and no one was wiling to do anything and our jobs all fled to China along with everything else while they have tariffs on U.S. made products and letting them get away with this completely unfair trade.

    So we end up with some higher prices. Those cases, what is a it, a few cents to the normal price? I know what I do already when taxes get jacked up higher, I live in California where we have high taxes. I just cut my spending down. I buy a new iPhone every 4 years. I have the XS now and so I won't be getting a new iPhone until 2022. If other other countries had some guts. I guess they want to continue getting screwed by China. China will blink first. They ship and sell far, far more goods to the U.S. than the other way around. A lot of that is the tariffs the Chinese people pay for U.S. Imports. All that has to happen is things be far ore FAIR and equal, and the Tariffs will disappear.

    By the way, Before American's were getting their money stolen in the form of TAXES. The U.S. Government used to run and pay for it's self from Tariffs.
    I see you are with the President don't know anything about economy. Wonder why the media never asked the economists about the trade war? 
    mobirdbaconstang
  • Reply 10 of 30
    sflocalsflocal Posts: 4,544member
    The sooner Apple gets production out of China the better.  It's about time someone - anyone - took a stand on China.  Yes, it's going to hurt for a while and people will miss their cheap junk and $50 microwave ovens but there are bigger issues that China needs to be beaten on the head with.  IP theft, South Pacific islands, market manipulation, WTO, and the list keeps going.  
    magman1979felix01
  • Reply 11 of 30
    tzeshantzeshan Posts: 1,945member

    jbdragon said:
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Samsung has a lot of phones made in China also. In fact most Android phones sold are made in China. Overall this is not going to have that much of a effect. It's going to hurt China far more than the U.S. We've been getting screwed over for YEARS and YEARS and no one was wiling to do anything and our jobs all fled to China along with everything else while they have tariffs on U.S. made products and letting them get away with this completely unfair trade.

    So we end up with some higher prices. Those cases, what is a it, a few cents to the normal price? I know what I do already when taxes get jacked up higher, I live in California where we have high taxes. I just cut my spending down. I buy a new iPhone every 4 years. I have the XS now and so I won't be getting a new iPhone until 2022. If other other countries had some guts. I guess they want to continue getting screwed by China. China will blink first. They ship and sell far, far more goods to the U.S. than the other way around. A lot of that is the tariffs the Chinese people pay for U.S. Imports. All that has to happen is things be far ore FAIR and equal, and the Tariffs will disappear.

    By the way, Before American's were getting their money stolen in the form of TAXES. The U.S. Government used to run and pay for it's self from Tariffs.
    This is really a one sided story. First of all, most of the Chinese goods are made in China by US companies. Apple is the best example. Second, the President being senile, chose to forget EPA. Remember EPA? It is the federal agency set up by US Congress in the 70s to regulate US companies regarding pollution. When US and China established diplomatic relationship, China welcomed US companies to make goods in China. US companies found out China does not have strong environmental regulation. They can make goods there with little concerns about pollution. Twenty years later China has severe pollution due to manufacturing. Do you and the President forget this? Third, China has large population and very is backward. Its labor is dirt cheap. More US companies found they can make products in China cheaply. 

    With these three very important points, which of them is by the Chinese government? 
    bsimpsenbaconstang
  • Reply 12 of 30
    tzeshantzeshan Posts: 1,945member
    sflocal said:
    The sooner Apple gets production out of China the better.  It's about time someone - anyone - took a stand on China.  Yes, it's going to hurt for a while and people will miss their cheap junk and $50 microwave ovens but there are bigger issues that China needs to be beaten on the head with.  IP theft, South Pacific islands, market manipulation, WTO, and the list keeps going.  
    Apple will be a victim too if your wish become true. And Apple iPhone is not cheap junk. 
  • Reply 13 of 30
    bsimpsenbsimpsen Posts: 272member
    jbdragon said:
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Samsung has a lot of phones made in China also. In fact most Android phones sold are made in China. Overall this is not going to have that much of a effect. It's going to hurt China far more than the U.S. We've been getting screwed over for YEARS and YEARS and no one was wiling to do anything and our jobs all fled to China along with everything else while they have tariffs on U.S. made products and letting them get away with this completely unfair trade.

    So we end up with some higher prices. Those cases, what is a it, a few cents to the normal price? I know what I do already when taxes get jacked up higher, I live in California where we have high taxes. I just cut my spending down. I buy a new iPhone every 4 years. I have the XS now and so I won't be getting a new iPhone until 2022. If other other countries had some guts. I guess they want to continue getting screwed by China. China will blink first. They ship and sell far, far more goods to the U.S. than the other way around. A lot of that is the tariffs the Chinese people pay for U.S. Imports. All that has to happen is things be far ore FAIR and equal, and the Tariffs will disappear.

    By the way, Before American's were getting their money stolen in the form of TAXES. The U.S. Government used to run and pay for it's self from Tariffs.
    Way back in 2015, half of Samsung's phone production was in Vietnam. Their new India factory is expected to make up to 120Million units/year. All of China, as of 2017, was producing 150Million/year and declining. Samsung's in a much better position to avoid tariffs than Apple. While most phones sold in China might be made in China, I don't see how that's germane to this discussion.

    As for China blinking first, they have a better handle on dissension than the US does and no upcoming election for Xi to win. That said, I hope this gambit works, and works soon.
  • Reply 14 of 30
    wood1208wood1208 Posts: 1,939member
    3rd party chargers from China will be tariffed too.
  • Reply 15 of 30
    tzeshantzeshan Posts: 1,945member
    bsimpsen said:
    jbdragon said:
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Samsung has a lot of phones made in China also. In fact most Android phones sold are made in China. Overall this is not going to have that much of a effect. It's going to hurt China far more than the U.S. We've been getting screwed over for YEARS and YEARS and no one was wiling to do anything and our jobs all fled to China along with everything else while they have tariffs on U.S. made products and letting them get away with this completely unfair trade.

    So we end up with some higher prices. Those cases, what is a it, a few cents to the normal price? I know what I do already when taxes get jacked up higher, I live in California where we have high taxes. I just cut my spending down. I buy a new iPhone every 4 years. I have the XS now and so I won't be getting a new iPhone until 2022. If other other countries had some guts. I guess they want to continue getting screwed by China. China will blink first. They ship and sell far, far more goods to the U.S. than the other way around. A lot of that is the tariffs the Chinese people pay for U.S. Imports. All that has to happen is things be far ore FAIR and equal, and the Tariffs will disappear.

    By the way, Before American's were getting their money stolen in the form of TAXES. The U.S. Government used to run and pay for it's self from Tariffs.
    Way back in 2015, half of Samsung's phone production was in Vietnam. Their new India factory is expected to make up to 120Million units/year. All of China, as of 2017, was producing 150Million/year and declining. Samsung's in a much better position to avoid tariffs than Apple. While most phones sold in China might be made in China, I don't see how that's germane to this discussion.

    As for China blinking first, they have a better handle on dissension than the US does and no upcoming election for Xi to win. That said, I hope this gambit works, and works soon.
    Trump wants to bring jobs back to US. Moving to India does not bring jobs back. 
    viclauyyc
  • Reply 16 of 30
    lkrupplkrupp Posts: 6,956member
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Yeah, I love all these caveats and hand wringings and what ifs. Meanwhile the Chinese are robbing us blind and decimating our economy. But some would rather just capitulate to China so the price of an iPhone doesn’t go up a few dollars. I remember the “Better Red than Dead” mantra of the anti-war crowd in the sixties and seventies, meaning of course that they would rather live under a totalitarian dictatorship than die fighting for their freedom. And I also look sideways at the anti-trade war sentiment because while it is against these tariffs it doesn't offer any solutions to the China problem other than to ignore it. It’s just against what Trump is doing... because it’s Trump doing it.
    edited May 13 viclauyyc
  • Reply 17 of 30
    tzeshantzeshan Posts: 1,945member
    lkrupp said:
    bsimpsen said:
    Should the next round of tariffs cover the iPhone, I wonder if the big winner will be Samsung. They have substantial manufacturing capacity in Vietnam and may be able to avoid tariffs for their iPhone competitors. That would hand Korean based Samsung (which like Chinese manufacturers has aped Apple's for years) a significant advantage in Apple's home market. As switching ecosystems becomes less commonplace, short term shifts in competitive advantage can become long term shifts in customer base.

    Beware the law of unintended consequences.
    Yeah, I love all these caveats and hand wringings and what ifs. Meanwhile the Chinese are robbing us blind and decimating our economy. But some would rather just capitulate to China so the price of an iPhone doesn’t go up a few dollars. I remember the “Better Red than Dead” mantra of the anti-war crowd in the sixties and seventies, meaning of course that they would rather live under a totalitarian dictatorship than die fighting for their freedom. And I also look sideways at the anti-trade war sentiment because while it is against these tariffs it doesn't offer any solutions to the China problem other than to ignore it. It’s just against what Trump is doing... because it’s Trump doing it.
    Are you a white man? I wonder why your logic contradicts with the facts so much. US unemployment is at 60 years low. Is US economy so bad that unemployment is so low? If not, what do you mean by decimating our economy? Your words are full of propaganda. 
  • Reply 18 of 30
    longfanglongfang Posts: 113member
    apple ][ said:
    Hit 'em ever harder is my opinion. We're not playing hardball yet, merely softball.

    The IP rights is one of the most important issues and of course the US should not budge a single inch on it.

    Who wants to agree to a deal where you agree to allow the other party to continue to steal from you?

    Whatever tariffs China introduced recently, let's double that and hit 'em again.

    Small items like cases or chargers are not a big deal in my opinion. If the average consumer has to pay a little bit more for a few accessories, then it's worth it, because the long term goal is much more important than anything that will happen in the short term.
    What utter nonsense you really are a Trumpet. 

    China can easily can around a US tariff increases by devaluing the Yuan. If that doesn’t work and you really push them up against the wall so to speak they can take the US economy down with it by tanking the US dollar. 
    CarnageGeorgeBMac
  • Reply 19 of 30
    apple ][apple ][ Posts: 8,581member
    longfang said:
    What utter nonsense you really are a Trumpet. 

    China can easily can around a US tariff increases by devaluing the Yuan. If that doesn’t work and you really push them up against the wall so to speak they can take the US economy down with it by tanking the US dollar. 

    I've been saying the same thing about China on this forum for ages, long before Trump ever entered into the equation. 

    There have been many articles written about China here in the past, and these same thoughts or similar thoughts have been expressed many times in the past, and not just by me. Going back many, many years. 

    And devaluing their currency is something that China has been doing for a long time already. It's about time that somebody stood up to them and their crappy practices.

    And a low dollar is actually good for American exports. 
    edited May 14
  • Reply 20 of 30
    China has millions and millions of civilians in concentration camps making consumer goods as slaves. Love it! Theft of all software, film, music, art and technology design? Of course, this is the true Confucius ideal! Rape of worldwide natural resources and wildlife? Better for China's penis enlargement tea. Nuclear missile silos on hundreds of stolen coral reefs? Better way to show the world they are the rightful steward of humanity.
    viclauyyc
Sign In or Register to comment.