15% Tariff Hitting AirPods, Apple Watch, HomePod and More in the U.S. This Sunday

[stylinexpat]

There’s a Russian puppet in the usr (United States of Russia), and the trade wars is one of the strings in the puppet master’s show.

Only the puppet master wins.

Or perhaps USI
[doublepost=1567350019][/doublepost]

When the Government of China lowers the Yuan to lower the manufacturing costs denominated in USD, they essentially are paying for the tariffs because the cost of goods imported from China stays the same after the tariffs are paid. So, who is eating the tariffs? China is by lowering the value of its currency. Who is suffering from these tariffs? China is because they are making less money in USD than before the tariffs were implemented. Who is benefiting from the tariffs? US Government is benefiting because they are collecting billions of dollars from the tariffs.

China has no choice but to lower its currency because if they don't, the products manufactured in China become less competitive and consumers will switch to alternatives made elsewhere that cost less.

Letting their currency to depreciate will help exports around the world for China. If I am not mistaken China’s exports to US are about 20% of their exports and 80% are to the rest of the countries around the world. So the gains from others should offset the losses from one country.
[doublepost=1567350424][/doublepost]

Our companies are giving jobs and business to China and China is stealing all of our stuff and cheating us. Time to find a new country to do business with. We're not gonna take it.
[doublepost=1567310659][/doublepost]

A simple answer for a simple mind.
[doublepost=1567310741][/doublepost]

Whenever I have to wait a long time, I just find another doctor who will see me sooner.

You sound like Trump drinking his Kool Aid
The gains and advantages have outweighed the losses from all of this. Had it been the other way around as you and Trump would like others to believe Apple would not be where they are today. Apple’s stock price would also not be where it is at today. Due to the profit margin Apple has been able to maintain so you know how many people Apple was able to employ earning over $100K per year..?

I am quite curious as to where all the stuff in your house is made. When you shop do you look for the cheapest product or do you pay more and only buy made in the US products..?

 

[neutralguy]

Really?


Your post makes no sense, you are lost in the past. Try getting to know the modern world. China's "slave labor" are hundreds of millions of people who have gone from being poor to reaching the middle class. Those people are the biggest market in the world for US goods. You'd wall off the USA from China, thereby ensuring Americans will lose access to the biggest market opportunity of the century. Whose costing the USA jobs? Attitudes like yours.

When did it become USA's responsibility to make Chinese people reach middle class by supporting IP theft by China?
[doublepost=1567350804][/doublepost]

Why should Apple be paying higher taxes to the government? It makes absolutely no sense. Apple is not a private company; it's a corporation. Everything Apple makes is supposed to benefit its shareholders. I hope you are a shareholder too. If you have a 401(k) and invest in a mutual fund or an ETF, you definitely have a position in AAPL. Why do you want to be punished as a shareholder? To what end? So that the US government could fight more wars?

Maybe because I am an American citizen first, then an apple share holder. And a s a citizen I want America's prosperity first than my own bank account.

 

[citysnaps]

I know what net profit margin is kiddo. Over 20% in retail is exceptional. If you think apples margins are fair you’re delusional. Educate yourself please.

If you were knowledgeable about Gross Profit Margins you would have discovered that Apple's at 38% is right in line with the Forbes article you linked to! The article you attempted to use to discredit my first post about Apple's GPM being 38% and NPM at 22% not being accurate.

With respect to Apple's 22% NPM, that's right in line for a company that develops and manufacturers products, and engages in substantial R&D. You might not understand that's what Apple primarily does.

You still don't understand the difference between gross and net margins. Take a look at other similar tech companies and their net margins.

Have you ever personally been engaged in researching, developing and manufacturing electronic products for a technology company?

Are you still claiming I just made up Apple's numbers?

 

[PastaPrimav]

Apple analyst Ming-Chi Kuo said earlier in August that he believes Apple will absorb most of the U.S. tariff costs on its devices "in the mid-short term" rather than raising prices for consumers.

Please. We all know that Apple has been raising prices continuously raising prices in anticipation of this. Their iPhone and iPad price gouging for the last year has been hedging against this and customers have already been paying for it.

Apple takes advantage of cheap labor in China, charges obscene prices with ridiculous margins, and will not eat a dime of the tariffs. They have already found ways to make you pay for it, in advance.

 

[stylinexpat]

When did it become USA's responsibility to make Chinese people reach middle class by supporting IP theft by China?
[doublepost=1567350804][/doublepost]
Maybe because I am an American citizen first, then an apple share holder. And a s a citizen I want America's prosperity first than my own bank account.

Do you own any Apple products or Apple stock..?

 

[citysnaps]

Please. We all know that Apple has been raising prices continuously raising prices in anticipation of this. Their iPhone and iPad price gouging for the last year has been hedging against this and customers have already been paying for it.

Apple takes advantage of cheap labor in China, charges obscene prices with ridiculous margins, and will not eat a dime of the tariffs. They have already found ways to make you pay for it, in advance.

Ridiculous margins? How much?



"and will not eat a dime of the tariffs."

Of course Apple won't. Do you have any idea why? Hint: Consider Apple's net margins and the amount of the tariffs.

 

[neutralguy]

Do you own any Apple products or Apple stock..?

Both

 

[sirozha]

If you are self employed, a contractor, retired, work for a company that decides not to cover, Or unable to work for any reason you are not covered.

Canada covers every single citizen from before birth to grave, no matter their income or work situation. That is incredibly valuable.

As for the claim that they are no benefit when you are healthy? That isn’t true. Other posters have talked to check ups and more which benefit heathy people. One not mentioned yet is Canada’s programs also give parents 18 months payed time off (and their jobs back after) for parental care for new babies and adoptions. That offering is enforced at the federal level. Once again, incredibly valuable to the health of baby and parents alike. The equivalent USA offering is between 0 and 12 weeks of unpaid time.

Here is a better breakdown to show costs per country
View attachment 855636

Another incredibly valuable thing is that in Canada one doesn't lose health coverage when one loses one's job, quits one's job, or changes one's job. In the US, the only option is COBRA, which costs three times as much as one would pay for health insurance premiums while being employed. As for the employers providing health insurance, employees still end up paying $600 or so for a family coverage (this doesn't include vision or dental coverage) per month, and the deductibles are still thousands of dollars per year. So, even if you get health benefits from work, you end up paying ten thousand dollars or more each year for medical care.

But most importantly is that in Canada, you keep your coverage though the good times and bad times. When people lose their jobs, all of their chronic conditions become acute because of the stress that they are under. In Canada, you get the medical care to help you through the stressful times with no cost to you. In the US, you end up being even more stressed because you lose your medical coverage. That is when people accrue unbelievably high medical bills, as just one trip to the ER costs thousands of dollars.

Finally, in Canada, people don't lose all of their life's savings because of a medical condition. In the US, people get completely wiped out and go bankrupt if they get a serious condition because they will be fired from their job if they stay sick too long, and once they are fired, they have no more health insurance coverage, so their medical bills destroy their lives.

This is not the way to live one's life to be constantly in fear for what will happen to you if you get sick.

 

[stylinexpat]

Both

So you benefited from China then. Apple did as well and so did many many others from the connected dots.

 

[H.E. Pennypacker]

If you were knowledgeable about Gross Profit Margins you would have discovered that Apple's at 38% is right in line with the Forbes article you linked to! The article you attempted to use to discredit my first post about Apple's GPM being 38% and NPM at 22% not being accurate.

With respect to Apple's 22% NPM, that's right in line for a company that develops and manufacturers products, and engages in substantial R&D. You might not understand that's what Apple primarily does.

You still don't understand the difference between gross and net margins. Take a look at other similar tech companies and their net margins.

Have you ever personally been engaged in researching, developing and manufacturing electronic products for a technology company?

Yes.

 

[stylinexpat]

Ridiculous margins? How much?



"and will not eat a dime of the tariffs."

Of course Apple won't. Do you have any idea why? Hint: Consider Apple's net margins and the amount of the tariffs.

We shall see this month and at the end of this upcoming last quarter of this year when Apple releases its earnings and sales numbers.

 

[H.E. Pennypacker]

Yes

 

[Hieveryone]

Or perhaps USI
[doublepost=1567350019][/doublepost]

Letting their currency to depreciate will help exports around the world for China. If I am not mistaken China’s exports to US are about 20% of their exports and 80% are to the rest of the countries around the world. So the gains from others should offset the losses from one country.
[doublepost=1567350424][/doublepost]

You sound like Trump drinking his Kool Aid
The gains and advantages have outweighed the losses from all of this. Had it been the other way around as you and Trump would like others to believe Apple would not be where they are today. Apple’s stock price would also not be where it is at today. Due to the profit margin Apple has been able to maintain so you know how many people Apple was able to employ earning over $100K per year..?

I am quite curious as to where all the stuff in your house is made. When you shop do you look for the cheapest product or do you pay more and only buy made in the US products..?

Make in India or Vietnam

 

[ajfahey]

Perfect excuse for Apple to increase price spread between iPhones of different storage capacities to improve their already fat margins.

Perfect excuse for me to move to Android if Tim keeps all Apple manufacturing in China. That or he could absorb the cost of tariffs with his 40% gross margins.
[doublepost=1567354520][/doublepost]

Make in India or Vietnam

What deal with the devil does Cook have with China?

 

[stylinexpat]

Regardless of how people look at it at the end of the day what Trump is doing is raising your taxes on products you buy and you pay for meaning that Trump is making you pay more by adding new taxes and raising taxes on the products you purchase. By continuing to purchase and spend money you are showing Trump that you support what he is doing. If you support him and his policies go out and shop. If you oppose hold off all your shopping until he removes all new taxes he added on Americans. All he is doing is taking more money out of your accounts by making you pay more for his trade war with China.
[doublepost=1567354857][/doublepost]

Make in India or Vietnam

Same thing.. Trump can easily do the same down the road with them as well. You can not compare salaries and income of those countries with those from the US. That is not with free trade is all about. Have you seen what the import duties of those countries are of US products? Have you been to China, India and Vietnam? Vietnam is also communist. India's import duties are as high as China's in many cases.

 

[sirozha]

Regardless of how people look at it at the end of the day what Trump is doing is raising your taxes on products you buy and you pay for meaning that Trump is making you pay more by adding new taxes and raising taxes on the products you purchase. By continuing to purchase and spend money you are showing Trump that you support what he is doing. If you support him and his policies go out and shop. If you oppose hold off all your shopping until he removes all new taxes he added on Americans. All he is doing is taking more money out of your accounts by making you pay more for his trade war with China.
[doublepost=1567354857][/doublepost]
Same thing.. Trump can easily do the same down the road with them as well. You can not compare salaries and income of those countries with those from the US. That is not with free trade is all about. Have you seen what the import duties of those countries are of US products? Have you been to China, India and Vietnam? Vietnam is also communist. India's import duties are as high as China's in many cases.

Incredibly clueless and childish comment.

 

[citysnaps]

Perfect excuse for me to move to Android if Tim keeps all Apple manufacturing in China. That or he could absorb the cost of tariffs with his 40% gross margins.

The current 15% and then the mid-December 25% tariffs would come right off Apple’s net 22% margin/profit.

Do you think any company would allow that to happen?

 

[samcraig]

Some economists are estimating that every household will be spending an additional $1,000 a year because of these tariffs.

 

[statik13]

Perfect excuse for me to move to Android if Tim keeps all Apple manufacturing in China. That or he could absorb the cost of tariffs with his 40% gross margins.
[doublepost=1567354520][/doublepost]
What deal with the devil does Cook have with China?

If you want to hold anybody accountable, why not go to the source? Cook didn't start the trade war or introduce tariffs as a way of punishing private industry. That fault lies elsewhere.
[doublepost=1567355420][/doublepost]

Some economists are estimating that every household will be spending an additional $1,000 a year because of these tariffs.

Wasn't that the estimate *before* the latest round of tariff increases? I imagine it is higher now.

 

[citysnaps]

Some economists are estimating that every household will be spending an additional $1,000 a year because of these tariffs.

True. As that money goes right into the US Treasury, that’s essentially an additional tax on consumers.

Kind of a sneaky way of dealing with the additional debt this administration has caused.

 

[mudflap]

President is doing a fantastic job

Really hope you're being sarcastic.

 

[Morgenland]

I’m not complaining about the past as much as I don’t see any reason to continue to hold AAPL, as I see a major correction in the next month or two. Yes, I have made a lot of money. I netted much more than $1 million. It doesn’t change the fact that I would have netted even more had I invested in AMZN.

I see real vision coming from Amazon. I see no vision from Apple. Apple Watch and AirPods are cool products, but are small achievements for a tech giant like Apple. The gripes I’ve had about lack of features in Apple’s services, Apple’s lack of interest for the Mac in the enterprise, Apple’s failure in Education, etc. have been raised for years, and nothing is improving. However, Tim seems to get a kick out of new watch bands and emojis.

One of the main principles of investing is only invest in companies one believes in and understands their business model. I no longer believe in Apple’s ability to grow, and frankly, I don’t get Tim’s vision for the future - probably because he has no vision. I never invested in GOOG for the same reason. IMHO, among the FAANG stocks, Amazon is the most innovative company. At this point, even Microsoft's is more innovative than Apple. The ever decreasing sales numbers and stagnated profits is the best proof that under Cook, Apple’s growth has ended, and there is no vision at Apple what to do next.

Cook’s dangerous brinksmanship vis-à-vis Qualcomm, his foolish bet on Intel’s cellular modems, and as a result the absence of 5G iPhones this year will be a major blow to the Apple’s bottom line this holiday season (Q1 2020 fiscal year). The 15% tariff on the iPhones starting on December 15 will kill the second quarter numbers for Apple. We are talking a really bad year for Apple starting today (September 1, when the 30% tariff on Apple’s desktops, AirPods, and Apple Watches began). Whether Apple absorbs the tariffs or passes them on, AAPL is going to be under a serious bearish pressure on Wall Street - either for the lower sales numbers with the stable margins or for the stable (or slightly lower) sales numbers with much lower margins. It’s inevitable that Apple will start being hammered come September 3 (the first trading day after the 30% tariff was imposed on Apple) in anticipation of what is to come. With Apple’s products being so overpriced, a 30% tariff is not something that Wall Street will ignore. Appe has no room to increase their prices to compensate for the tariffs. The iPhones are already more expensive than most are willing to pay; hence, a much longer upgrade cycle. Apple has painted itself in the corner: they can’t increase the price and they can’t lower profit margins, as either move will hit the stock price hard.

So, even though I am not a trader but a long-time investor. This time around, I’m not willing to go down with AAPL like I have done dozens of times in the past 12 years since I started investing in Apple.

Thank you for the answer, and please excuse my somewhat rude wording last time.
Interestingly, I also sold my almost complete AAPL a few days ago (also long-time) and will carefully investigate if and when I might buy again.
Trump actually sealed my decision with his tarrif.
All aspects you described in a kind way have also moved me to do. However, I think that e.g. the Apple Card might actually become something very exciting. Or glasses. Or med-tech. There is still innovation, but on delay. And with the iPhone I haven't seen anything for a long time. What is to come in a saturated market... Bigger screens, more lenses, G5 G6 G7 LOL.
At Amazon (which I also hold) I am less optimistic than you. They may be the world's biggest internet trader, but the stocks are actually totally boring. And drones and similar gimmicks are only circus.

The markets become a circus, the clown rules US.

 

[mudflap]

These are the same people who are against consumerism, want to protect the planet, they advocate for free healthcare for illegal immigrants and want to vote for higher taxes. Now they are very unhappy their iWatch will cost them 15% more.

They become very angry when you point out their inconsistencies.

We don't advocate for free healthcare for illegal immigrants. We want free healthcare for American citizens. And we won't mind paying higher taxes if we wind up saving thousands in the end because of Medicare For All.

Stop watching Fox News. They are LYING TO YOU, just like our pathological liar of a president.
[doublepost=1567357714][/doublepost]

Please. We all know that Apple has been raising prices continuously raising prices in anticipation of this. Their iPhone and iPad price gouging for the last year has been hedging against this and customers have already been paying for it.

Apple takes advantage of cheap labor in China, charges obscene prices with ridiculous margins, and will not eat a dime of the tariffs. They have already found ways to make you pay for it, in advance.

iPad storage has gone up and prices have gone down.

 

[pika2000]

Apple can mitigate this by importing stuff that are made outside China. Foxconn and Pegatron have plants in countries like India and Brazil. Sure, it will hit the bottom line for a moment, but it would probably not affect much in the long run once those plants are boosted. And since most of them are accessories, which are less complicated than the iPhone, I’m sure it won’t be much of an issue.

Of course, Trump can decide otherwise anytime, depending on how China negotiates. I wouldn’t worry too much. I mean Apple prices are already close to double the US MSRP in many countries due to local tariffs. So maybe it’s time for Americans to taste something similar.

 

[Hieveryone]

Regardless of how people look at it at the end of the day what Trump is doing is raising your taxes on products you buy and you pay for meaning that Trump is making you pay more by adding new taxes and raising taxes on the products you purchase. By continuing to purchase and spend money you are showing Trump that you support what he is doing. If you support him and his policies go out and shop. If you oppose hold off all your shopping until he removes all new taxes he added on Americans. All he is doing is taking more money out of your accounts by making you pay more for his trade war with China.
[doublepost=1567354857][/doublepost]
Same thing.. Trump can easily do the same down the road with them as well. You can not compare salaries and income of those countries with those from the US. That is not with free trade is all about. Have you seen what the import duties of those countries are of US products? Have you been to China, India and Vietnam? Vietnam is also communist. India's import duties are as high as China's in many cases.

Can’t do business with nations who cheat and steal.