Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
15% Tariff Hitting AirPods, Apple Watch, HomePod and More in the U.S. This Sunday
- Thread starter MacRumors
- Start date
- Sort by reaction score
Generally Apple being a company with US-based financials tries to keep numbers aligned with the dollar. Their prices in other countries generally set to try to be equivalent profitability once taking into account things like exchange rates, taxes, tariffs, and alternative manufacturing arrangements (some countries have forced them to manufacture locally).
Since US sales taxes are typically paid by the consumer, the US price has been a bit of a baseline. With an import tax affecting apple's margin, they may need to increase the US price to keep margins.
This presents an odd scenario where the exchange rate price of the new device might be cheaper in other countries. Apple may raise the price in both the US and those other countries to align, or not.
It is also possible that since the iPhone has significant holiday sales, they will not increase the price. Rather, they will try to import as many phones to the US as possible, and risk taking a US tariff hit to their margins after Dec 15th.
I suspect that Apple likes to take an envisioned retail price and work backwards to come up with a build price - then they set that as a constraint on the design team. This generally works well for the consumer devices, although it was something they broke for the X/XS. I believe the idea was to create a separate flagship design category that allowed more design budget (similar to iPad Pro, really), but people bought them like mad anyway. That build price has been a crapshoot with PCs due to the lack of control of supplier timelines and prices, and I actually suspect they have quite a few internal 'failed designs' as a result - probably a whole room of them for the Mac Pro.
Finally, the Americanski can slightly feel what we pay here in Europe 
Dollars to Doughnuts Apple prices won't drop a PENNY back down when this fake 'Tariffs War' finally ends.
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.
I dislike Trump greatly, and I almost never vote conservative.
With that said, if these tariffs go into effect, and consumer pressure forces Apple to not raise prices, then I see this as Apple indirectly paying higher taxes to the government, which most level-headed people will agree is something that they should be doing anyway. So, not that bad a thing?
With that said, if these tariffs go into effect, and consumer pressure forces Apple to not raise prices, then I see this as Apple indirectly paying higher taxes to the government, which most level-headed people will agree is something that they should be doing anyway. So, not that bad a thing?
Can’t this American president do anything right besides golf and eat McDonald’s?
I spend summers in Canada. I don't understand this argument. The CAD/USD exchange rate is just that - an exchange rate. Who says that one Canadian Dollar should be equal one US Dollar? The Australian Dollar to USD exchange rate is even more lopsided. It's not about the exchange rate; it's about how much people get paid. If an average US salary is USD $60,000 (just an example), and an average Canadian salary were CAD $80,000, the purchasing power would be very similar.Now you almost get to feel how bad it is to pay Canadian prices. At least most states don't have the double digit 12% and higher sales tax we have. 15% still isn't the 30+% we have to pay in exchange but y'all can keep whining.
I found that the prices of most products in Canada are similar to the prices for similar products in the US when the exchange rate is applied. So, the problem is that the Canadian salaries are lower than US salaries based on the exchange rate. I recall that about 15 years or so, the Canadian dollar was at parity with the US dollar. Maybe NAFTA wasn't good for you guys either. Your prices should not climb when your dollar falls against the US dollar. You guys make a lot of things domestically: agricultural products, electricity, cars, airplanes, train cars, etc. There is no reason why groceries in your stores should not be tied to your salaries, especially because you are protecting your agriculture from US farmers pretty seriously. Meat, milk, cheeses, grains etc. are all produced by Canadian farmers. Therefore, if the Canadian farmers get paid less than US farmers (when converted to US dollars), the food should also cost less than it does in the US. However, food costs about the same in Canada when converted to US dollars. I see that you guys are left with much less money once you pay the prices and the taxes. However, you don't have to worry about medical bills, which is a huge plus.
No China isn’t paying anything. They sell the goods at the same price, the importer pays the tariff and then either passes it on to you the American consumer (eg the story earlier about kids’ bikes increasing in price) or absorbs it like this article suggests Apple will and the US company makes less profit.
All those millions of dollars going to the treasury have been taken out of American pockets. It’s called a tariff but it’s basically a tax on America.
Yes it has an effect on business in China because it dampens demand, but China isn’t paying anything to the treasury, hardworking Americans are.
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?
at destroying America!
[doublepost=1567209322][/doublepost]
So why isn't the US cooperating with China?
[doublepost=1567209401][/doublepost]
So you're saying you want free healthcare for immigrants because now we have higher taxes on Chinese imports?
Last edited by a moderator:
Its a small price to pay for the long term health if America. Silicon Valley is being selfish and put their profits ahead of the American people, and ignore tge big picture.
Last edited by a moderator:
- U.S. is still unfriendly to LGBTQ community.
Wedding cake for gay couple? Nope. Can't have that. Transgenders serving in military? No. People using restroom of gender they identify with? No. Legalizing same sex marriage? Hell no. Funeral for dying father whose son is gay? No. What President and his DoJ is in support of a Supreme Court case that contends that federal civil rights laws do not and should not protect workers based on sexual orientation or gender identity?
- U.S. is still unfriendly to people who aren't white. Look at the rise of white nationalist propaganda, their rallies, and the increasing # of attacks on them per the FBI. Remind me again what race/skin color is Permit Patty, BBQ Becky, Pool Patrol Paula, and all the others who called the police on people with dark color skin?
Remember "sh_thole countries"? How about the "Great Replacement" theory? Who was it that wrote "Why don’t they go back and help fix the totally broken and crime infested places from which they came. Then come back and show us how it is done. These places need your help badly, you can’t leave fast enough."?
- U.S. is still not tolerant of other religions. Remember Trump's Muslim ban? What group wants to bring back Christian prayers in schools?
If a person in China can make something for cheaper than an American, LET THEM. It reduces costs, benefitting the consumers most.
Protecting workers that can't compete by raising taxes on imports is a form of corruption.
In fact, we SHOULD be sending jobs to China, because that's the goal of a good economy: to produces goods for cheapest.
Our economy isn't 1950's Detroit factory. It's an economy of college-educated experts. We are millions. The factory workers do not belong in this country, since China can do their jobs for cheaper.
The strength of America is our university system, not manual labor. We are not oxen. We spend thousands of dollars to educate each and every one of our citizens, to teach them things like chemistry, history, calculus, literature, etc.., so they DON'T have to work at a factory.
We should not allow leaders like Trump and Bernie to turn our citizens into oxen.
Protecting workers that can't compete by raising taxes on imports is a form of corruption.
In fact, we SHOULD be sending jobs to China, because that's the goal of a good economy: to produces goods for cheapest.
Our economy isn't 1950's Detroit factory. It's an economy of college-educated experts. We are millions. The factory workers do not belong in this country, since China can do their jobs for cheaper.
The strength of America is our university system, not manual labor. We are not oxen. We spend thousands of dollars to educate each and every one of our citizens, to teach them things like chemistry, history, calculus, literature, etc.., so they DON'T have to work at a factory.
We should not allow leaders like Trump and Bernie to turn our citizens into oxen.
Amazing how so many people (liberals) in the comments here want China to keep ripping off the US. If it wasn't for past administrations letting China to continue taking advantage of the US, we wouldn't have to deal with this now. The US will have to suffer for a little bit while President Trump actually fixes it which other presidents did not even bother trying to do. Can't you people stop listening to the brainwashing media for once and actually think about this. Once this trade war gets resolved, the country and it's companies will be thriving more than they ever did since the 50s!
Being against the tariffs doesn't mean people want China to win.
In a trade war, no one wins. You only have losers.
That's because American's spend and consumer more than the Chinese do.
Historically, the Chinese saved their money. Americans on the other hand tend to spend every cent they have and when that's not enough, they go into debt to fuel their spending habits.
Last edited by a moderator:
lol. They already passed them on. Why do u think Apple raised prices 20-30% the past year or so? They were already preparing.
Just want to note -- we (USA) have to pay tariffs for products exported to China. In spite of the INSANE amount of products we buy from China, they still hold that over us. Trump said on the campaign trail that he, "believes in free trade, but fair trade." This is just the US holding China to the same standard they're holding us to.
[doublepost=1567210152][/doublepost]
Revenue: $655 million (2017)
Source:
https://en.wikipedia.org/wiki/The_Trump_Organization
[doublepost=1567210152][/doublepost]
Revenue: $655 million (2017)
Source:
https://en.wikipedia.org/wiki/The_Trump_Organization
China pays as companies start looking to get out. That’s the whole point of tariffs. To make it more difficult to stay or even consider China.
Nooo. That can’t be. Apple is way too kind-hearted and trustworthy to do that to their customers.
Do you really think Apple and other massive corporations are paying a fair amount in income taxes? They aren't. By any sane rationale, they're among the worst offenders in tax avoidance.
The argument that their stock will be negatively affected by this in the long term is a fallacious assumption. Long term, the market reacts to relative changes across the entire landscape. Apple stock would only suffer negative long term consequences if they were a singled-out victim of these tariffs. But they aren't. Anybody manufacturing overseas is going to find their products on the ledger in short order.
He’s got lying nailed down pretty solid. He does that as effortlessly as most people breath.