Mark Gurman, for Bloomberg:
In late November, Trump told the Wall Street Journal he might impose tariffs on mobile phones and laptops, and said consumers “could stand” a 10% increase in prices “very easily” […]
I’m sure that “said consumers” completely agree with Trump.
A $1,249 iPhone XS Max with 256 gigabytes of storage has $453 worth of parts, according to TechInsights. A 25% levy on that would be $113, raising the purchase price by about 9%. Apple’s other models, the iPhone XS and the iPhone XR, could face a similar increase, according to estimates. In a recent note to investors, Morgan Stanley estimated that a $999 iPhone XS would cost $160 more. JPMorgan analysts forecast a 14% price increase […]
If Apple passes the whole tariff cost to U.S. consumers, demand could drop by 10% to 40%, Cowen’s Sankar estimated on Tuesday. That, in turn, may slice earnings per share by 1% to 4% in fiscal 2020, the analyst said.
So, Apple could “very easily” lose between 10% and 40% in new iPhone sales. I guess that means that the free 5 GB iCloud tier isn’t going up in size anytime soon.
Speaking at Liberty University today, Trump escalated his rhetoric on Apple’s overseas manufacturing, and claimed somehow the US would reclaim those jobs in the future. “We have such amazing people in this country: smart, sharp, energetic, they’re amazing,” Trump said. “I was saying make America great again, and I actually think we can say now, and I really believe this, we’re gonna get things coming… we’re gonna get Apple to start building their damn computers and things in this country, instead of in other countries.”
In the voice of ‘Pinky and The Brain’: And then he’ll try to take over the world!