Trump’s new rates shook the world, but will Apple (or your iPhone) notice something about it? This can happen.
New rates Trump: How does this affect Apple (and your iPhone)?
On Wednesday 2 April, US President Donald Trump implemented various rates. Goods from other countries therefore have to deal with considerable import duties.
The EU must also believe it, because an import levy of 20 percent has been announced. For other countries it is even worse, because Trump has even higher rates for that. China, for example, must count on an import levy of 54 percent.
Usually reliable Apple connoisseur Ming-Chi Kuo said that Apple should count on a lower profit (from around 8 to 9 percent) if they do not implement price increases. Yet he gave a number of examples with which Apple can recover the higher costs.
More production towards India
If India can conclude a new trade agreement (with or without rates) with Trump, and Apple can increase production capacity in India to 30 percent of the total, then the profit is only 1 to 3 percent lower.
Prices up at the pro models
KUO says that about 65 to 70 percent of the total iPhone sale consists of pro models. He thinks that consumers with sufficient budget will also accept a price increase faster. So if it is necessary, Apple can increase the price of the pro and pro Max models.
More options for Apple
Apple can also choose to ask more for the sale of iPhones from providers. Another option is to give less money to trade in old iPhones. That means that your old iPhone is therefore worth less (at Apple). Apple can also negotiate with their (raw materials) suppliers for a lower purchase price.
PROFLEMENT OF APOLT
In 2024, Apple had a profit margin of around 46 percent. This means that the company achieved 46 percent of sales as a profit after deduction of the costs. After Trump announced the rates, Apple’s share price dropped by more than 9 percent.
Download the iPhoned app
