Well, I came here to talk about how these tariffs also now affect the preorder launch for the Switch 2.
as per nintendo: “Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.”
This is going to be a terribly bad year for the tech and most other communities. How likely will we see Apple prices stay the same?
The one slight positive is this disaster was created by the scribble of a sharpie in a few seconds and can be deleted just as fast.
You can't. It would be easier trying to mend a marriage after the second affair. The tariffs will be removed at some point but the relationship is broken for good.
This is what the government spending cuts and tariffs are about. If there's a better way to fix the debt issue other than cutting spending and trying to make up trade deficits, they'd probably like to hear some ideas. These moves suggest they don't have any better ones.
In mid-October last year, the widely respected financial journal, The Economist, ran with this headline and cover story: "The American Economy: The Envy of the World." And the sub-head was: "The American economy has left other rich countries in the dust." Not bad for the country that Trump has would have the brain-dead believe is in an "economic emergency" and the trading partner punching bag of the world. If so many countries are taking advantage of us, it would seem they're doing a pretty bad job of it!
The last time we tried tariffs this insane (Trump's are actually worse than Smoot-Hawley), they helped usher in the Great Depression. So there's your "proof of concept" and the reason high tariffs have been discredited by economists left, right and center ever since. It also goes without saying that triggering a recession and stagflation with this stupidity will cut growth and revenue, thereby driving up deficits even higher. And spare me the BS that Trump, the self-styled King of Debt, has ANY interest in solving the debt problem. In his first term, his unpaid for tax breaks to the richest blew up the national debt by more than all 44 previous presidents COMBINED.
As for spending cuts: the Pentagon budget is nearly $850 billion dollars and for decades has been spending more each year than the next 8-10 largest militaries in the world COMBINED. So how is it that we're always falling behind our adversaries? Why are so many weapons systems wildly overbudget, hugely behind schedule and never work as advertised? Seems like a place that's rife with waste, fraud and abuse. Musk, himself, has excoriated "idiots who are still building the F-35" and has pleaded, "...in the name of all this is holy, let us stop the worst military value for the money in history, which is the F-35 program." Did DOGE stop it? Nope. Where are the mass DOGE firings at the Pentagon? Why hasn't DOGE taking over the Pentagon computers? Why hasn't DOGE limited Pentagon credit cards to $1? Instead, DOGE is devastating health care and services for the veterans who risked their bodies and lives in defense of this country. Nice! DOGE isn't looking for waste, fraud and abuse--it is indiscriminately taking a chainsaw to the government to free up more money for tax cuts to millionaires and billionaires.
Big BS about veterans, I am DV and not lost a single cents, in fact my health care is far to none. Stop your big BS about veterans please
It's not BS, its reality and the cuts to staffing hadn't affected you yet because it only just happened. The whole system is breaking down. I'm a vet too and I can see the writing on the wall: it's about to be much harder to get the care I need.
Apple is very deliberate and disciplined in its product positioning and pricing, especially over product margin. Short term, in the US market I expect them to weather the storm (they can afford to, and International and Services will hold the fort). As product updates are introduced I expect them to increase the value proposition (such as more base features) to take consumer sting out of price increases due to tariffs. More memory or SSD is cheap to add and cheers up consumers.
Trump's tariffs only affect goods imported in to the USA. Retaliatory tariffs will affect goods exported from the USA. The bulk of Apple's sales are not in the USA and almost all of its manufacturing is outside the USA. Hence most of Apple's business will be unaffected.
Trump has created an incentive to manufacture in the USA for domestic consumption but also an incentive to manufacture outside the USA for sales in the rest of the World. As manufacturing costs are higher in the USA, the net effect is likely to be higher prices but only in the USA.
As someone not currently residing in the US, I’m breaking out the popcorn.
As someone residing in the US, I would like some of that popcorn so I can enjoy watching everything fall apart around me. Then again, it will get heavily taxed and stale…
Well, I came here to talk about how these tariffs also now affect the preorder launch for the Switch 2.
as per nintendo: “Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.”
This is going to be a terribly bad year for the tech and most other communities. How likely will we see Apple prices stay the same?
Shame on Nintendo for waiting so long to release the Switch 2.
This is what the government spending cuts and tariffs are about. If there's a better way to fix the debt issue other than cutting spending and trying to make up trade deficits, they'd probably like to hear some ideas. These moves suggest they don't have any better ones.
In mid-October last year, the widely respected financial journal, The Economist, ran with this headline and cover story: "The American Economy: The Envy of the World." And the sub-head was: "The American economy has left other rich countries in the dust." Not bad for the country that Trump has would have the brain-dead believe is in an "economic emergency" and the trading partner punching bag of the world. If so many countries are taking advantage of us, it would seem they're doing a pretty bad job of it!
The last time we tried tariffs this insane (Trump's are actually worse than Smoot-Hawley), they helped usher in the Great Depression. So there's your "proof of concept" and the reason high tariffs have been discredited by economists left, right and center ever since. It also goes without saying that triggering a recession and stagflation with this stupidity will cut growth and revenue, thereby driving up deficits even higher. And spare me the BS that Trump, the self-styled King of Debt, has ANY interest in solving the debt problem. In his first term, his unpaid for tax breaks to the richest blew up the national debt by more than all 44 previous presidents COMBINED.
As for spending cuts: the Pentagon budget is nearly $850 billion dollars and for decades has been spending more each year than the next 8-10 largest militaries in the world COMBINED. So how is it that we're always falling behind our adversaries? Why are so many weapons systems wildly overbudget, hugely behind schedule and never work as advertised? Seems like a place that's rife with waste, fraud and abuse. Musk, himself, has excoriated "idiots who are still building the F-35" and has pleaded, "...in the name of all this is holy, let us stop the worst military value for the money in history, which is the F-35 program." Did DOGE stop it? Nope. Where are the mass DOGE firings at the Pentagon? Why hasn't DOGE taking over the Pentagon computers? Why hasn't DOGE limited Pentagon credit cards to $1? Instead, DOGE is devastating health care and services for the veterans who risked their bodies and lives in defense of this country. Nice! DOGE isn't looking for waste, fraud and abuse--it is indiscriminately taking a chainsaw to the government to free up more money for tax cuts to millionaires and billionaires.
Big BS about veterans, I am DV and not lost a single cents, in fact my health care is far to none. Stop your big BS about veterans please
So, you're saying that right-wing media aren't reporting the massive cuts and layoffs DOGE is making at the VA? Do you have any clue what is going on around you? That last question was rhetorical, I know you don't.
it’s called efficiency. Cutting waste to maximize organizational health. That’s a good thing.
Any business knows this.
Bloat is bad. Lean, mean machine is good.
We prune trees and bushes to redirect the flow from dead, useless branches to healthy, productive ones. That’s what going on here at organizations in the government. There is literally only good to come of it. Americans are shocked to see where our tax dollars have been wasted. It’s finally being addressed.
Veterans now will have a better shot of money actually going to their care instead of dead end pointless endeavors.
You are correct the waste and bloat are bad, in fact there is no one arguing in favor of waste and bloat.
What you and Musk have absolutely failed to do is show proof that any of the cuts were waste or bloat. Musk has tried to do that but his number never add up or comport with reality. For example he claimed he cut an 80 billion dollar contract, then it turned out it was an 8 million dollar contract. That isn't a small error nor is it an outlier. It does serve as an example of how poorly planned and haphazard the actions have been.
You are simply repeating the claims because you want to believe they are true not because there is any data to back them up. Try some critical thought for a change.
Well, I came here to talk about how these tariffs also now affect the preorder launch for the Switch 2.
as per nintendo: “Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.”
This is going to be a terribly bad year for the tech and most other communities. How likely will we see Apple prices stay the same?
Shame on Nintendo for waiting so long to release the Switch 2.
Bro, what? 🤣 Nintendo was smart on an economical level by selling the console for a profit for the entire lifetime of the console and is one of the biggest-selling consoles in the world. For consumers, I agree they took so long to finally release something more powerful.
A tariff is a sales tax levied on goods as they enter the country. The buyer pays the tax, not the seller. On finished products, that tax will be passed on directly to the consumer. On parts, that tax will be incorporated into the price and passed on to the consumer. The talking point that Apple or “China” or anyone on the supply side will pay the tax for any length of time is ridiculous. Also remember that sales taxes are regressive. The more of your income that goes directly to buying things, the greater percentage of your income goes directly to paying the tax.
This is going to be a disaster.
Actually it depends on the seller whether or not they will absorb the cost.
Ford motor Compsny announced today that they will be selling their vehicles under invoice from today through early June. They have enough inventory to help offset the loss somewhat, but it’s an example of how sellers get creative in a temporary reset of trade relations.
It may posdible be tough in some markets for the short term, but the long term gain is worth shooting for.
As far as Apple, will be interesting to see if they raise prices at all - or to learn of any special treatment - regardless of the “no exemptions” statement someone here attributed to him.
I see a lot of knee-jerk reactions here and proclamations of doom with very little look at the reasons why it potential upside.
Let’s let the president cook and do his thing. It’s what he was elected to do. Apple is in communication and seems to be supportive of him. So let’s give it a bit and see how it shakes out before rushing to judgement one way or the other.
If anything, Apple could definitely absorb the cost since their pricing on anything upgraded I has been ridiculous for years now.
Hopefully this could ignite a return to pricing normally when all is said and done.
Clearly, economics, logic, history, manufacturing, and math are not everyone’s forte.
>>> Ford motor Compsny announced today that they will be selling their vehicles under invoice from today through early June. They have enough inventory to help offset the loss somewhat, but it’s an example of how sellers get creative in a temporary reset of trade relations.
Inventory is a carrying cost - an expense - and expenses do not “offset” losses. Even those who have never been involved with manufacturing often learn this in college.
>>>it depends on the seller whether or not they will absorb the cost… Apple could definitely absorb the cost since their pricing on anything upgraded I has been ridiculous for years now.
These new Republican import taxes will come out of the pockets of the consumer and/or the seller. If from the consumer, it hits the consumer’s bank account. If from the seller, it hits the seller’s profit margin, bottom line, stock price, then the consumer’s 401k. Trying to claim that these new Republican import taxes will somehow magically be “absorbed” by someone (else) somewhere (else) and evaporate is fantasy. There is no free lunch. Even Apple, Inc., is not immune to such radical attacks on our economy.
“Tariffs are going to raise about $600 billion a year, about $6 trillion over a 10-year period,” Mr. Navarro told Fox News on Sunday. This is on top of $100 billion a year from Mr. Trump’s car and truck tariffs. He also tried to claim that “the message is that tariffs are tax cuts.” George Orwell, call your office. In the real economic world, a tariff is a tax. If you raise $600 billion more a year in revenue for the federal government, you are taking that amount away from individuals and businesses in the private economy. By any definition that is a tax increase, and the $600 billion figure would be one of the largest in U.S. history. Wall Street Journal - https://apple.news/AoqVinTZzTeWm_MaCh90k5g
>>> Let’s let the president cook and do his thing. It’s what he was elected to do.
False. Trump campaigned on lowering prices “Day 1” -
>>> I see a lot of knee-jerk reactions here and proclamations of doom with very little look at the reasons why it potential upside.
I get it. Not everyone stayed awake in 10th grade History class. The good news is that even the sleepy heads who spent most of their time drooling on their desks in HS can read about the Smoot-Hawley Tariff Act of 1930 online.
Here’s the Cliff’s Notes version for the book/reading-challenged:
IOW - The statement, "This is going to be a disaster" is supported by history, basic economics, logic, and facts. Claims to the contrary run contrary to history, basic economics, logic, and facts.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
For many people through out the world, who understand the the risks of the current worldwide Marxist takeover, your country is seen as once again leading a global recovery.
Trump's tariffs only affect goods imported in to the USA. Retaliatory tariffs will affect goods exported from the USA. The bulk of Apple's sales are not in the USA and almost all of its manufacturing is outside the USA. Hence most of Apple's business will be unaffected.
Trump has created an incentive to manufacture in the USA for domestic consumption but also an incentive to manufacture outside the USA for sales in the rest of the World. As manufacturing costs are higher in the USA, the net effect is likely to be higher prices but only in the USA.
And Apple could raise price worldwide to recoup some of all of the cost of the tariffs on U.S. imports. Here’s the way I see it, and these are very rough numbers used only for illustration.
About 75% of Apple’s global revenue is hardware, the other 25% being software and subscriptions, etc.
One third of that 75% is U.S., the rest being overseas sales.
So if Apple were to split the tariff hit across the entire world it would have to raise prices by only one third as much as it would on U.S. hardware sales, if it were to attempt to cover the entire tariff hit just against U.S. sales. That’s a mitigation, but it’s still a huge increase in prices.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
So what do you want to do w the $36T debt? This guy has the balls to do something about it. We been ripped off for a long time. Americans are just buying & consuming cheap imports. Just look at your closets, your house, probably 99% are all imported by greedy importers. TEMU anyone?? Probably 90% are not utilized.
Have you not been paying attention? It was Trump who added $8T to the debt in his first term. He added 1/3rd more to the debt that he inherited!! And now you trust HIM on debt reform? And you trust him versus all the accumulated history of what tariffs wrought the other three times this nation tried using them to fund itself? Hint: it was unmitigated disaster all three times, because it’s a toxic way to function economically.
Trump's tariffs only affect goods imported in to the USA. Retaliatory tariffs will affect goods exported from the USA. The bulk of Apple's sales are not in the USA and almost all of its manufacturing is outside the USA. Hence most of Apple's business will be unaffected.
Trump has created an incentive to manufacture in the USA for domestic consumption but also an incentive to manufacture outside the USA for sales in the rest of the World. As manufacturing costs are higher in the USA, the net effect is likely to be higher prices but only in the USA.
And Apple could raise price worldwide to recoup some of all of the cost of the tariffs on U.S. imports. Here’s the way I see it, and these are very rough numbers used only for illustration.
About 75% of Apple’s global revenue is hardware, the other 25% being software and subscriptions, etc.
One third of that 75% is U.S., the rest being overseas sales.
So if Apple were to split the tariff hit across the entire world it would have to raise prices by only one third as much as it would on U.S. hardware sales, if it were to attempt to cover the entire tariff hit just against U.S. sales. That’s a mitigation, but it’s still a huge increase in prices.
Looking at the sentiment towards USA in the rest of the world I don't know how it will work
Hopefully for a full disclosure to the American consumer, a line item will be shown on all receipts indicating the cost of this new federal sales tax(Tariff) in black and white, all American consumers need to see it in writing as a public service because half the country seems to be confused about what a tariff really is…..
I think most of the car dealers/retailers will show that line item because a car is such a big ticket item, The dealer that I bought my current car from sent me a proactive email (surprise) a day after Trump announced all this nonsense, indicating that they would try to let everyone know what the effects will be towards their pricing in the future. (I think they’re gonna show it as a line item on the bill) which I hope everyone (retailers) will do no matter how large or small the new federal sales tax is on the item purchased.
I still can’t believe people voted for this moron. It’s sad to see the pathetic joke this once great country has become.
So what do you want to do w the $36T debt? This guy has the balls to do something about it. We been ripped off for a long time. Americans are just buying & consuming cheap imports. Just look at your closets, your house, probably 99% are all imported by greedy importers. TEMU anyone?? Probably 90% are not utilized.
How is that Americans being ripped off? Nobody held a gun to your collective heads and said buy our cheap stuff or else. If anything it’s been Americans literally holding guns to the heads of others during your military adventures that have taken place practically non stop since WW2 ended.
What’s ironic is that Donald Trump had his opportunity to serve his country Vietnam era, like a true hero John McCain, but Donald and his daddy thought being in the military was for suckers. note the biggest disconnect is the number of people in the military who support him.
India is an interesting case. India had tariffs for imported goods and Apple started production there to avoid said tariffs... So yes, not everyone is tariff free...
On the other hand my biggest fear is the worldwide increase in price for Apple products in order to offset the reduced margins on US products which have tariffs. Basically, Apple takes a big hit on profit margins domestically and offsets some of this by increasing profit margins worldwide. Which, in turn, would mean that the rest of the world "pays" the tariffs in the form of increased pricing to maintain profit margins. I expect Apple and others to follow suit, which would tank sales and open great possibilities for Samsung and Chinese manufactures in many countries. As only American companies would have to try to offset the decrease in margins on the US market. Same goes for Nike and other American brands.
Trump's tariffs only affect goods imported in to the USA. Retaliatory tariffs will affect goods exported from the USA. The bulk of Apple's sales are not in the USA and almost all of its manufacturing is outside the USA. Hence most of Apple's business will be unaffected.
Trump has created an incentive to manufacture in the USA for domestic consumption but also an incentive to manufacture outside the USA for sales in the rest of the World. As manufacturing costs are higher in the USA, the net effect is likely to be higher prices but only in the USA.
And Apple could raise price worldwide to recoup some of all of the cost of the tariffs on U.S. imports. Here’s the way I see it, and these are very rough numbers used only for illustration.
About 75% of Apple’s global revenue is hardware, the other 25% being software and subscriptions, etc.
One third of that 75% is U.S., the rest being overseas sales.
So if Apple were to split the tariff hit across the entire world it would have to raise prices by only one third as much as it would on U.S. hardware sales, if it were to attempt to cover the entire tariff hit just against U.S. sales. That’s a mitigation, but it’s still a huge increase in prices.
Looking at the sentiment towards USA in the rest of the world I don't know how it will work
Also, it would create huge opportunities for other manufacturers with the guaranteed result of drastically decreasing iOS marketshare worldwide as Apple would effectively price itself out of the market. And the surplus Samsung and Chinese phones which would be pricy in the US would be sold everywhere else at prices much lower than iPhones.
India is an interesting case. India had tariffs for imported goods and Apple started production there to avoid said tariffs... So yes, not everyone is tariff free...
On the other hand my biggest fear is the worldwide increase in price for Apple products in order to offset the reduced margins on US products which have tariffs. Basically, Apple takes a big hit on profit margins domestically and offsets some of this by increasing profit margins worldwide. Which, in turn, would mean that the rest of the world "pays" the tariffs in the form of increased pricing to maintain profit margins. I expect Apple and others to follow suit, which would tank sales and open great possibilities for Samsung and Chinese manufactures in many countries. As only American companies would have to try to offset the decrease in margins on the US market. Same goes for Nike and other American brands.
India is an interesting case, but it's not a case that can be applied to other countries, especially the US. Apple was able to get Foxconn to move into China for manufacturing because India has a larger potential workforce than China and can work at comparably low wages. I seem to recall articles that show that Apple's success with Indian production to be much worse than what China can offer. Low yields due to slow production and poor quality control make India a dysfunctional backup over China. I don't think this can change any time soon. Maybe if Apple had another decades to build more automation and better infrastructure, but even then I feel like it would still pale in comparison to what China can offer.
Comments
What you and Musk have absolutely failed to do is show proof that any of the cuts were waste or bloat. Musk has tried to do that but his number never add up or comport with reality. For example he claimed he cut an 80 billion dollar contract, then it turned out it was an 8 million dollar contract. That isn't a small error nor is it an outlier. It does serve as an example of how poorly planned and haphazard the actions have been.
You are simply repeating the claims because you want to believe they are true not because there is any data to back them up. Try some critical thought for a change.
Clearly, economics, logic, history, manufacturing, and math are not everyone’s forte.
Inventory is a carrying cost - an expense - and expenses do not “offset” losses. Even those who have never been involved with manufacturing often learn this in college.
These new Republican import taxes will come out of the pockets of the consumer and/or the seller. If from the consumer, it hits the consumer’s bank account. If from the seller, it hits the seller’s profit margin, bottom line, stock price, then the consumer’s 401k. Trying to claim that these new Republican import taxes will somehow magically be “absorbed” by someone (else) somewhere (else) and evaporate is fantasy. There is no free lunch. Even Apple, Inc., is not immune to such radical attacks on our economy.
False. Trump campaigned on lowering prices “Day 1” -
Classic con-man bait and switch.
I get it. Not everyone stayed awake in 10th grade History class. The good news is that even the sleepy heads who spent most of their time drooling on their desks in HS can read about the Smoot-Hawley Tariff Act of 1930 online.
Here’s the Cliff’s Notes version for the book/reading-challenged:
- https://www.youtube.com/watch?v=AyyAh2lQXF8&t=46s
IOW - The statement, "This is going to be a disaster" is supported by history, basic economics, logic, and facts. Claims to the contrary run contrary to history, basic economics, logic, and facts.
Also worth reading:
https://www.thebulwark.com/p/the-american-age-is-over
About 75% of Apple’s global revenue is hardware, the other 25% being software and subscriptions, etc.
One third of that 75% is U.S., the rest being overseas sales.
I think most of the car dealers/retailers will show that line item because a car is such a big ticket item, The dealer that I bought my current car from sent me a proactive email (surprise) a day after Trump announced all this nonsense, indicating that they would try to let everyone know what the effects will be towards their pricing in the future. (I think they’re gonna show it as a line item on the bill) which I hope everyone (retailers) will do no matter how large or small the new federal sales tax is on the item purchased.
On the other hand my biggest fear is the worldwide increase in price for Apple products in order to offset the reduced margins on US products which have tariffs. Basically, Apple takes a big hit on profit margins domestically and offsets some of this by increasing profit margins worldwide. Which, in turn, would mean that the rest of the world "pays" the tariffs in the form of increased pricing to maintain profit margins.
I expect Apple and others to follow suit, which would tank sales and open great possibilities for Samsung and Chinese manufactures in many countries. As only American companies would have to try to offset the decrease in margins on the US market. Same goes for Nike and other American brands.