When the Trump government announced plans to widen the grid of its tariffs on imports from China, China threatened with retaliatory measures that were "pretty devastating." can be for Apple – hitting iPhones and other devices …
The WSJ reports that it is now not only Apple products that can be hit by import tariffs, but also by the materials Apple needs to make its iPhones.
Because Apple assembles almost all its gadgets in China, its es, AirPods and other devices are vulnerable to the Trump administration's plans to broaden the scope of tariffs on Chinese imports – a risk Apple warned earlier this month.
This dependency can also make the iPhone and other devices vulnerable if Chinese officials continue to retaliate to limit the sale of materials, equipment and parts to US manufacturers' actions The Wall Street Journal reported on Sunday that Beijing is considering.
The timing of the new measures of the countries can be especially bad for Apple, which starts this week with the shipment of two of its three new iPhones and a new smart. These new devices are expected to help boost sales of the business in the last three months of the year, when shopping in Christmas yields a third of Apple's annual revenue.
Moor Insights analyst Mark Vena said that this could be serious.
China's threatened retaliatory actions in particular "can be pretty devastating," said Mark Vena, an analyst at Moor Insights Strategy, a technology research firm. He said that Apple should have sufficient inventory of key components for iPhones and smartes to maintain production during the holidays, but long-term Chinese retaliation could be a serious problem.
Apple aly is facing a 10% rate on Apple's sold in the US because they would be taxed when they enter the country from China. If the company absorbs these costs, it hurts Apple's margins. If it passes on the costs to the consumer, this can negatively affect sales. An analyst estimated that the previous round of pricing could lower Apple's revenue by 5%, while the latest proposals would bite much deeper.
CEOs, including Tim Cook, have repeatedly warned Trump that a trade war with China will harm the US economy.