Prepare for Apple price increases

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Prepare for Apple price increases

Apple Inc., the world’s most valuable company, said proposed U.S. tariffs on $200 billion worth of products imported from China will raise prices for some of its popular consumer goods such as the Apple Watch and AirPods headphones.

[Bloomberg]
 
What about the tax cuts Apple got from the Trump administration? Surely those cuts would too have been passed on to the consumer?
 
Shouldn't the increase be limited to the products imported to the US and sold there?

Why can't Core purchase them from Apple China and import directly?
 
f2wohf said:
Shouldn't the increase be limited to the products imported to the US and sold there?

Why can't Core purchase them from Apple China and import directly?
Click to expand...

Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers,” Apple said in its letter.
Click to expand...

Seems to indicate that US consumers would be the ones affected. But they're the largest Apple market so it's hard not to see it affecting other countries. Spreading that increase across all markets would probably make sense for Apple...nice boost for the AAPL share price.
 
They could probably absorb the extra cost. I mean, a few percent less on a few hundred percent markup, aint that bad, right? Still profit.
 
f2wohf said:
Apple China.



https://www.reuters.com/article/us-...in-local-design-patent-disputes-idUSKBN16W0KT
Click to expand...

That’s the retail subsidiary section though. Not the wholesaler/distributor part of Apple and it’s not even branded as Apple.

In fact I don’t think Apple even owns them so the term subsidiary is very loosely used. It’s like Core is to SA.

All Apple hardware is shipped from America as far as I know and nothing gets dropshipped from assembly locations.

Always been a broken model but that’s the way it is. Often why you have even Chinese people flying to America on launch day to procure iPhone and such for resale.
 
SauRoNZA said:
That’s the retail subsidiary section though. Not the wholesaler/distributor part of Apple and it’s not even branded as Apple.

In fact I don’t think Apple even owns them so the term subsidiary is very loosely used. It’s like Core is to SA.

All Apple hardware is shipped from America as far as I know and nothing gets dropshipped from assembly locations.

Always been a broken model but that’s the way it is. Often why you have even Chinese people flying to America on launch day to procure iPhone and such for resale.
Click to expand...

They do own their retail subsidiaries in the big markets (Europe, Us, Japan, China...).

Even if they don’t have a Chinese manufacturing subsidiary, it could be bought from Apple Ireland (which is just a postbox to switch profits). Why make non US countries pay US import tax? It would just be counter productive.

Actually they ship from China to distribution centers:

Before Apple's formal unveiling on stage, iPhones are shipped to distribution centers around the world, including Australia, China, the Czech Republic, Japan, Singapore, the U.K. and the U.S., said one of the people with knowledge of the matter. Security personnel are with the devices every step of the way, from truck depots, airports, customs and storage warehouses until the product is finally unveiled, two people said.
Click to expand...

http://www.bloomberg.com/news/2013-...hts-from-china-to-your-local-apple-store.html
 
Last edited:
f2wohf said:
They do own their retail subsidiaries in the big markets (Europe, Us, Japan, China...).

Even if they don’t have a Chinese manufacturing subsidiary, it could be bought from Apple Ireland (which is just a postbox to switch profits). Why make non US countries pay US import tax? It would just be counter productive.

Actually they ship from China to distribution centers:



http://www.bloomberg.com/news/2013-...hts-from-china-to-your-local-apple-store.html
Click to expand...

In the big markets they aren’t subsidiaries but rather Apple themselves more directly.

But yeah interesting on the last point that must changed but then also why does this conversation even exist because then no US duties should apply anywhere else, but America.
 
SauRoNZA said:
In the big markets they aren’t subsidiaries but rather Apple themselves more directly.

But yeah interesting on the last point that must changed but then also why does this conversation even exist because then no US duties should apply anywhere else, but America.
Click to expand...

Looking at the french company registrar, Apple probably has close to the 10 subsidiaries in France for example:

Apple Europe
Apple France
Apple Education
Apple Computer Marketing
Apple Operations Internationales
Apple Retail France

https://www.societe.com/cgi-bin/search?champs=Apple
 
f2wohf said:
Looking at the french company registrar, Apple probably has close to the 10 subsidiaries in France for example:

Apple Europe
Apple France
Apple Education
Apple Computer Marketing
Apple Operations Internationales
Apple Retail France

https://www.societe.com/cgi-bin/search?champs=Apple
Click to expand...

Yes what I meant was those are fully owned and operated by Apple.

Whereas others are partnerships with third parties.
 
Pretty sure they will rework their supply chain to compensate such that global distribution will be out of a new location.

The US consumers will have to pay tariffs but international ones will mean sales loss.. not something they will want.
 
krycor said:
Pretty sure they will rework their supply chain to compensate such that global distribution will be out of a new location.

The US consumers will have to pay tariffs but international ones will mean sales loss.. not something they will want.
Click to expand...

Global distribution is already out of China to Japan, Singapore, Europe. They don’t send everything to the US to then send it again.

Core is probably supplied from Asia or Europe.
 
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