The new American tariffs announced by Donald Trump on Wednesday could affect the business of Apple, with sales decreasing even in the United States. This is because most of the spare parts are produced in other countries, especially in China, writes The New York Times.
“The tariffs threaten to increase pressure on Apple’s business. The company is already facing a 20% tariff on products imported from China, where Apple produces about 90% of the iPhones sold worldwide,” the publication writes.
It is noted that when Trump first imposed taxes on goods from China in 2018, Apple began to shift production of iPads and AirPods to Vietnam, and production of iPhones to India.
The NYT emphasizes that the tariffs “could put Apple’s business in trouble.”
“The iPhones, iPads and Apple Watches that the company sells generate three quarters of its annual revenues of nearly $400 billion. Since Trump has said that he will not allow products to be exempted from tariffs, Apple will have to either pay those taxes, which will reduce its profits, or indirectly transfer those additional costs to customers by raising prices,” the publication believes.
According to Morgan Stanley, tariffs on iPhones and other devices imported from China will increase Apple’s annual costs by $8.5 billion.
“This will reduce the company’s profit next year by $0.52 per share, or about $7.85 billion. This will be about 7% of next year’s profit,” the publication writes.
Apple’s shares fell 5.7% after Trump’s announcement.
Details, HERE.
