And anyway since the iPhones are built in China, Apple will be saving on manufactering costs also. I would think saving 2% on costs to build iPhones for the rest of the world would offset the 2% in China.
This is what I was thinking. Yes, theoretically, it could raise iPhone prices in China (if Apple actually raised iPhone prices in China). But that's only a fraction of the iPhone market.
On the other hand, _all_ of the iPhones are made in China. And I would expect that competition to be Apple's manufacturer is pretty high. So unless the current manufacturers have iron-clad long-term contracts denominated in dollars, Apple's manufacturing costs should go down across the board, while prices for iPhones will only be (potentially) affected for, say, a quarter to half of customers...and then only if Apple raises prices.
Meanwhile, Google announces that Google will now be named/subsumed-by Alphabet (a trademark already owned by BMW), and the stock soars. Odd days, for sure.
And here I was thinking I was so smart to pick up some more AAPL at $115. Now they are down to $111. *sigh* Good thing I'm a long term investor and not a day trader.
When AAPL is at $200 based on the new Apple TV and app store, this blip will be long forgotten.
Example... As of yestedays 1.9% devaluation of yuan..A 1000$ iphone would cost 1019... Now do u believe the chinese customer who was prepared to dish out a 1000 for the phone wont dish out 1019 ..? All of this is assuming Apple gets zero benifit with his suppliers and manufactures in china with the stronger dollar. But they do ! Which improves their margins overall and everywhere else in the world by the way! !
And apple also has the option to lower prices in china and transfer the benefits to the chinese consumers if they feel the 19 dollar increase is going to have a material effect on sales. Net effect.. Same margins in china.... Better margins in the rest of the world. also Lowering yuan improves Chinese exports which helps Chinese economy which helps the consumers splurge. And yet look at the dismal picture wall street is painting for Apple ! Apple is going to be fine.. And right know they are enjoying their buybacks at a nice discount !
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And anyway since the iPhones are built in China, Apple will be saving on manufactering costs also. I would think saving 2% on costs to build iPhones for the rest of the world would offset the 2% in China.
This is what I was thinking. Yes, theoretically, it could raise iPhone prices in China (if Apple actually raised iPhone prices in China). But that's only a fraction of the iPhone market.
On the other hand, _all_ of the iPhones are made in China. And I would expect that competition to be Apple's manufacturer is pretty high. So unless the current manufacturers have iron-clad long-term contracts denominated in dollars, Apple's manufacturing costs should go down across the board, while prices for iPhones will only be (potentially) affected for, say, a quarter to half of customers...and then only if Apple raises prices.
Meanwhile, Google announces that Google will now be named/subsumed-by Alphabet (a trademark already owned by BMW), and the stock soars. Odd days, for sure.
The Hong Kong Dollar is pegged to the US Dollar...
And here I was thinking I was so smart to pick up some more AAPL at $115. Now they are down to $111. *sigh* Good thing I'm a long term investor and not a day trader.
When AAPL is at $200 based on the new Apple TV and app store, this blip will be long forgotten.
Now do u believe the chinese customer who was prepared to dish out a 1000 for the phone wont dish out 1019 ..?
All of this is assuming Apple gets zero benifit with his suppliers and manufactures in china with the stronger dollar.
But they do ! Which improves their margins overall and everywhere else in the world by the way! !
And apple also has the option to lower prices in china and transfer the benefits to the chinese consumers if they feel the 19 dollar increase is going to have a material effect on sales.
Net effect.. Same margins in china....
Better margins in the rest of the world.
also
Lowering yuan improves Chinese exports which helps Chinese economy which helps the consumers splurge.
And yet look at the dismal picture wall street is painting for Apple !
Apple is going to be fine.. And right know they are enjoying their buybacks at a nice discount !
When the Fed raises rates to combat the devaluation, that fails, and QE4 is announced, all of it will be Apple’s fault.