What they could do is not increase prices at all and instead when someone goes to make a purchase have a tariff surcharge so the customer knows who exactly is to blame for the price hike.
Apple already calls out exactly what taxes and tariffs are added in the UK, so this could happen. Trump does a good job of silencing critics though. Everyone knows how vindictive he is.
I would imagine that Apple (and others) won't be using cargo plane drops to Kentucky for North American sales, which will just further add more cost, including the US where economies of scale won't be as apparent and/or shipments will be more spaced out until a cargo plane can be fully loaded for a specific NA country.
I imagine that Apple is putting everything on cargo planes making sure nothing goes on ships. Could be a lot of flights to Hawaii just to get goods across the border.
Tim Cook is primarily a logistics man. I am sure he will have been working flat out to rearrange supply routes to minimise the potential effects since Trump's diktat.
The last time I bought a MacBook directly from the UK Apple Store, many years ago, it arrived by courier direct from China. The US was not involved. As it says in the box "Designed in California" but made in China.
Unfortunately for Trump and his disciples, the USA is no longer required. It is the 3rd most populous country and if you count the EU, the 4th. The current US administration will only make the US less relevant. If you are an investor, it is time to cut your losses and invest elsewhere.
I would imagine that Apple (and others) won't be using cargo plane drops to Kentucky for North American sales, which will just further add more cost, including the US where economies of scale won't be as apparent and/or shipments will be more spaced out until a cargo plane can be fully loaded for a specific NA country.
I imagine that Apple is putting everything on cargo planes making sure nothing goes on ships. Could be a lot of flights to Hawaii just to get goods across the border.
I think they typically go thought an airport in Alaska that acts as a very busy international airport for getting goods from China to the US mainland in the most economical way.
Don't delay for my family. Because Tim Apple gave a felon/rapist a million bucks (and other reasons), we've made a collective deal not to buy anything more expensive than groceries for the next four years. We all have recent enough Macs, iPhones, and Apple Watches to wait out the Russian Asset's departure.
When I checked Apple’s Form 10-K for 2024 earnings, Apple’s US net sakes amounted to $142,196,000 out of a worldwide total of $391,035,000, meaning Apple’s US net sales are 36% of their total net sales. Since much of the rest of the sales Apple makes around the world may not be impacted by Trump’s tariffs, it could well be the market is overestimating the impact of Trump’s tariffs on Apple’s worldwide performance, since most worldwide sales can be sourced from outside the USA, avoiding the reciprocal tariffs much of the world is putting in place against US goods & services.
In Apple’s 2024 Form 10-K, Apple’s net sales in the USA were $142,196,000,000 out of a worldwide total of $391,035,000,000, or 36% of Apple’s worldwide net sales.
The impact of Trump’s tariffs will likely be most felt by US purchasers, a bit more than one third of Apple’s customers, while foreign purchasers may see little impact, except on those products which are only made in the US, since most of the tariff barriers being erected by countries around the world in response to Trump’s tariff war are directed at products originating in the USA.
I would think that the market’s reaction to Apple’s situation in this tariff war are exaggerated.
The top of the article says that prices would rise in the US and elsewhere. I’m struggling with rationalizing the “and elsewhere” part of it. I see how prices would have to rise for American consumers because tariffs would apply on products produced in China, but why would prices rise for those outside of the US? If I’m not mistaken, most of Apple’s product like iPads, Macs and iPhones are assembled in China with parts manufactured entirely outside the US. So that product, when sold to a Canadian or European, should cost the same as before, should it not? Canada hasn’t levied new tariffs on Chinese-made products or on parts from India, Taiwan, etc., so shouldn’t the price remain the same for Apple to produce the product in China and then sell it in Canada or Europe? Maybe I’m missing something or some element of the supply chain. Can someone elaborate on this for me?
One reason I can think of is to help balance the revenue and profit by raising the MSRP across the board so that it doesn't make sense to, say, drive to Mexico or Canada to get a new iPhone thereby allowing the unit sales to still be inline for a given country as well as balance the financial hit Apple would otherwise endure.
Additionally, Apple is a US company so a tariff may be added to goods entering, say, Canada, despite the product having its finally assembly and shipping in China.
Typically, when I get a new Mac ordered directly from Apple here in Canada, it ships from Asia without going through the USA. Apple’s American net sales are 36% of its worldwide sales, so it may be less impact on Apple worldwide to just take a hit on higher US prices for devices not made in the USA.
I know that Apple products are expensive for some, if you can’t afford Apple products don’t buy them. There are alternatives out there. i don’t care if they are expensive because I like them and I pay premiums for it, it’s my choice. lets quit crying about prices going up, Apple is no different than other companies. Apple is not forcing us to buy their products….move on
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The last time I bought a MacBook directly from the UK Apple Store, many years ago, it arrived by courier direct from China. The US was not involved. As it says in the box "Designed in California" but made in China.
Unfortunately for Trump and his disciples, the USA is no longer required. It is the 3rd most populous country and if you count the EU, the 4th. The current US administration will only make the US less relevant. If you are an investor, it is time to cut your losses and invest elsewhere.
In Apple’s 2024 Form 10-K, Apple’s net sales in the USA were $142,196,000,000 out of a worldwide total of $391,035,000,000, or 36% of Apple’s worldwide net sales.
The impact of Trump’s tariffs will likely be most felt by US purchasers, a bit more than one third of Apple’s customers, while foreign purchasers may see little impact, except on those products which are only made in the US, since most of the tariff barriers being erected by countries around the world in response to Trump’s tariff war are directed at products originating in the USA.
I would think that the market’s reaction to Apple’s situation in this tariff war are exaggerated.
i don’t care if they are expensive because I like them and I pay premiums for it, it’s my choice.
lets quit crying about prices going up, Apple is no different than other companies. Apple is not forcing us to buy their products….move on