imat

The iPhone is currently already almost entirely glass. Just not "screen".

gwydion said:

radarthekat said:

timmillea said:

Trump's tariffs only affect goods imported in to the USA. Retaliatory tariffs will affect goods exported from the USA. The bulk of Apple's sales are not in the USA and almost all of its manufacturing is outside the USA. Hence most of Apple's business will be unaffected.

Trump has created an incentive to manufacture in the USA for domestic consumption but also an incentive to manufacture outside the USA for sales in the rest of the World. As manufacturing costs are higher in the USA, the net effect is likely to be higher prices but only in the USA. 

And Apple could raise price worldwide to recoup some of all of the cost of the tariffs on U.S. imports.  Here’s the way I see it, and these are very rough numbers used only for illustration.

About 75% of Apple’s global revenue is hardware, the other 25% being software and subscriptions, etc.  

One third of that 75% is U.S., the rest being overseas sales.  

So if Apple were to split the tariff hit across the entire world it would have to raise prices by only one third as much as it would on U.S. hardware sales, if it were to attempt to cover the entire tariff hit just against U.S. sales.  That’s a mitigation, but it’s still a huge increase in prices.  

Looking at the sentiment towards USA in the rest of the world I don't know how it will work

Also, it would create huge opportunities for other manufacturers with the guaranteed result of drastically decreasing iOS marketshare worldwide as Apple would effectively price itself out of the market. And the surplus Samsung and Chinese phones which would be pricy in the US would be sold everywhere else at prices much lower than iPhones.

India is an interesting case. India had tariffs for imported goods and Apple started production there to avoid said tariffs... So yes, not everyone is tariff free...


On the other hand my biggest fear is the worldwide increase in price for Apple products in order to offset the reduced margins on US products which have tariffs. Basically, Apple takes a big hit on profit margins domestically and offsets some of this by increasing profit margins worldwide. Which, in turn, would mean that the rest of the world "pays" the tariffs in the form of increased pricing to maintain profit margins.
I expect Apple and others to follow suit, which would tank sales and open great possibilities for Samsung and Chinese manufactures in many countries. As only American companies would have to try to offset the decrease in margins on the US market. Same goes for Nike and other American brands.

According to ChatGPT Apple could also offset some of the decreasing US revenue per product by increasing prices worldwide and therefore increasing margins in other markets.

Meanwhile I am still waiting for the AppleTV to be brought up to speed and have some Home things integrated to it in a serious way. And a better integration with HomePod and or HomePod mini.

I don't particularly feel the need for another device, especially now that iPad is so "cheap" I can use it as a spare tablet at home for most of the uses that seem to be integrated in the new device.