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Home / Mac / How the trade war between the United States and China can increase Apple iPhone prices – MacDailyNews

How the trade war between the United States and China can increase Apple iPhone prices – MacDailyNews



"It's been a week since the Trump administration raised tariffs from 10 percent to 25 percent to $ 200 billion from Chinese exports, and technology companies are still breaking the consequences," writes Finley for Wired. "The existing tariffs cover a wide range of goods but few ready-made consumer electronics. The next round may include laptops and smartphones, referred to as" automatic data processing machines "in government proposals, but even though finished electronics get a passport, existing rates on data components As power supplies and circuit boards increase the cost to consumers. "

"It is still possible that the United States and China could prepare a deal that largely preserves the status quo. But Brian Keare, who heads the business analysis company Incorta, says that a lack of collective agreement last week led to an increasing fear among the companies he working on, that the tariffs could continue for years, writes Finley. "It is too early to say how drastic the results of the conflict will be. Keare says that companies he works with are still considering the impact of the increased tariffs on their businesses. "It quickly tells questions about absorbing charges against transferring prices to customers," he says. "

" Analysts at JP Morgan estimate that Apple would need to increase the price of iPhones by 1

4 percent to make up for tariffs, although it may also choose to absorb some of the costs, at least for now, "Finley writes. . "Businesses are eyeing new places to do business. Vendor contracts and manufacturing that could otherwise go to Chinese companies go to companies in India, Thailand and Vietnam … The result could be a gradual disentanglement of [the U.S.’s and China’s] economies."

Read more in the whole article here.

MacDailyNews Take: Again, the balance will come, perhaps earlier than many believe.

I am known that in both the United States and China there have been cases where everyone does not benefit, where the benefit has not been balanced. My belief is that one plus one is equal to three. The cake grows bigger, works together. – Apple CEO Tim Cook, March 24, 2018

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