Trump expresses dissatisfaction over potential iPhone manufacturing in India, citing a past issue with Apple CEO Tim Cook.
In an off-the-cuff chat with CNBC's "The Claman Countdown," senior analyst Craig Moffett from Moffettnathanson Research dissects the effects of trade spats on our beloved tech giant, Apple. Let's dive into how things have taken a twist for Tim Cook and co.
Donald Trump aired his grievances with the Apple honcho this week, revealing a playful confrontation over iPhone manufacturing in India. According to the president, he blanked Cook by saying:
Apple has been stepping up its future iPhone manufacturing in India in a bid to reduce its China-centric manufacturing dependence and cope with tariffs[1].
Cook chimed in during Apple's second-quarter earnings call, anticipating that the "majority" of iPhones for the US market would hail from India in the third quarter. For the iPad, Mac, Apple Watch, and Airpods up for sale in the US, "almost all" would come from Vietnam[1].
AAPL
Threats of Price Hikes
APPLE INC.
This dance between product location changes and tariffs has the potential to lead to inflated iPhone prices. Apple is mulling over raising costs, but they're keeping mum about the connection to tariffs[1]. The company could absorb some costs initially, only to pass on the rest to us consumers gradually[2].
212.33
This price hike could set Apple back approximately $900 million in the current quarter, potentially harping on their profitability if they fail to adjust prices accordingly[1][4].
-0.60
It's clear that Apple, a consistent player in the global market, is undergoing some major changes to keep functioning amidst trade tensions and tariffs. Time will tell how these tweaks will impact the price and quality of our favorite Apple gizmos.
-0.28%
References
- Apple considering iPhone price hikes this fall: report
- Tim Cook hints at higher costs for Apple devices due to Trump tariffs
- Apple warned that tariffs could increase prices for American consumers
- How tariffs are reshaping the world of global trade
Powered By
- The threats of price hikes for Apple products, such as iPhones, could be a result of tariffs, prompting the company to consider absorbing some costs initially and eventually passing them on to consumers.
- The ongoing dance between product location changes and tariffs, as seen with Apple shifting its iPhone manufacturing from China to India, could have significant impacts on the global finance and investment sectors, particularly funds targeted towards the technology and business industries.
- The rise in tariffs and the changes in Apple's manufacturing strategies may also affect the overall economy, especially in regions like India and Vietnam, where the company is planning to increase its production.
