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China Government The Almighty Buck United States Apple

Apple Says New China Tariffs Would Boost Prices On Some Products (bloomberg.com) 240

An anonymous reader quotes a report from Bloomberg: Apple, 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. The Mac mini desktop computer, Apple Pencil stylus accessory for iPads, various chargers and adapters and tooling equipment used to manufacturer and design some products in the U.S. will also be affected, the Cupertino, California-based company told the Office of U.S. Trade Representative in a letter dated Sept 5.

The company said the tariffs would "show up as a tax on U.S. consumers" and "increase the cost of Apple products that our customers have come to rely on in their daily lives." Beyond the core products, Apple said accessories like the HomePod speaker, some Beats speakers, AirPort and Time Capsule internet routers, the Magic Mouse and Magic Trackpad, and leather cases for the iPhone, iPad, MacBook and Apple Pencil would be affected. It said some of the parts it relies on for product development, including processors and research equipment, would also be hit by the tariffs.
On Friday, President Trump said he's prepared to impose tariffs on an additional $267 billion in Chinese imports, which would affect almost every category of consumer goods, according to analysts. He cites unfair trade practices as a reason for the tariffs.
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Apple Says New China Tariffs Would Boost Prices On Some Products

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  • by Registered Coward v2 ( 447531 ) on Saturday September 08, 2018 @08:11AM (#57274916)
    He gets a twofer in his mind: Look strong on Chin and punish silicon valley who he sees as his enemy.
    • by Curtman ( 556920 ) * on Saturday September 08, 2018 @08:26AM (#57274960)
      And incase Murricans haven't figured it out yet: tarrifs are taxes.

      Yay Trump! More taxes!
      • Re: (Score:2, Informative)

        by Striikerr ( 798526 )

        I was going to say something similar.. The companies just pass the cost along to consumers who are the ones paying this. So, the last tax cuts significantly benefitted the most wealthiest in America with the average American seeing a very minor increase in take-home pay. Now, to pay for that tax cut (because it is really screwing the country over with a massive debt), a new tax is implemented via the tariffs which places the bulk of the onus upon the 99% of Americans who now lose their very minor increase i

        • by rtb61 ( 674572 )

          Historians will look back on those China tariffs and call them the 'Wallmart Sales Tax' all targeted at the poor to specifically fund tax cuts for the rich. They are really choking the chicken now though, can't last much longer, infrastructure is already collapsing, pollution has gone insane and blowing money on faked up wars like there is no tomorrow. Really quite sad to watch, all that screaming about nothing as the empire crumbles and eats itself.

      • And incase Murricans haven't figured it out yet: tarrifs are taxes. Yay Trump! More taxes!

        Exactly, they are a dead weight cost and simply raise prices for everyone. Un competitive industries get to raise prices and in the end all government is doing is picking winners and losers. Unfortunately, may people I know think they will have no impact on prices and hey, we are hurting China.

      • by kenh ( 9056 )

        China imposes tarrifs on US-made goods, the US imposes tarrifs on Chinese-made goods, but are the tarrifs even? Last I heard they were not, China's are much higher than the US and most of the threatened tarrif increases approach parity with China.

        • by Curtman ( 556920 ) *
          I wonder how this trade war will end, given that the US borrows a trillion dollars a year from China and others every year just to function.
          • I wonder how this trade war will end, given that the US borrows a trillion dollars a year from China and others every year just to function.

            China needs to buy those US Bonds to manage its currency exchange rate. China is awash in dollars due to the trade imbalance. This would normally depress the value of the dollar in China and increase the value of the yuan. That would increase the price of their services and exports, decrease the price of US imports. Keep in mind, the savings experienced by manufacturing in China is not simply labor costs. It is basically everything is on sale due to the currency manipulations, raw materials, services, etc.

      • Re: (Score:2, Informative)

        by Kohath ( 38547 )

        And? Cut taxes $100, raise them $10. Net taxes, $90 lower.

        Response to cuts: complaints about cuts — "people will die [thehill.com] because taxes were cut!!!!”

        Response to increases: complaints about increases.

        Response to anything: complain about it, seek political advantage by spreading negativity and trying to divide people. (Then freak out when one of the groups you divided people into has more electoral votes than you expected.)

    • Only if you don't understand that most smart phones are made in China and this basically raises the prices on all of them. So the only people really being punished is the average consumer.
      • Only if you don't understand that most smart phones are made in China and this basically raises the prices on all of them. So the only people really being punished is the average consumer.

        Agreed. Apple is just getting press but the tariffs will impact goods and industries all across the country; leaving the average consumer, as well as perosn who loses a job because tariffs cause lost sales, holding the bag.

    • by gtall ( 79522 )

      Name one group Trump doesn't see as an enemy. Hell, he even denigrated Southerners. Aren't those the same crew that voted for him. Why yes, yes it is. The man creates enemies so that he can claim to defend the rest of us from his newly created enemies.

  • The mac mini is very old and at an high price now if they jack the price up it better get new hardware

  • ... they are only related to the rate of Mana the believers of that cult can supply. I've seen hungry believers share one pizza because their money would not allow to buy one, each, while casually discussing how they save up for the new iPhone, even while their existing one still works fine.
    • by fermion ( 181285 )
      Apple is a mid market luxury brand. As such they do not design to a price point, but rather to a quality specification. While the goal is not always met, the point is that they are not going to sell products primarily based on price.

      That said,their price is indeed not always related to production costs. To go further, the price is not always just high due to development and administrative costs. Apple stores can be spacious because the profit margins are high.

      We have evidence that apple customers, h

  • Stupid. (Score:2, Insightful)

    by Gravis Zero ( 934156 )

    The company said the tariffs would "show up as a tax on U.S. consumers"

    It's not a mere appearance, tariffs are a tax.

    "increase the cost of Apple products that our customers have come to rely on in their daily lives."

    If you specifically rely on Apple products for your daily life then you have really fucked up by "putting all your eggs in one basket".

    • Pretty sure it's not just Apple products that will be affected. Apple is just the first to make an announcement.

      • I bought my new cellphone last week. It was $199.00 which to me seemed like quite a bit. But now I don't expect I'll need to spend more on mobile device hardware for two or more years.

    • This tariff doesn't only affect Apple so how is this "putting all my eggs in Apple's basket"? Or is the fact that most if not all smart phones from all manufacturers are made in China have no impact on other manufacturers?
    • Yes, tariffs are a tax. But they are a consumption tax - consumers only pay them if they buy the affected products. I thought we were all for consumption taxes instead of income taxes?

      That said - "local" companies that cannot afford to stay in business due to a tariff on some of their material inputs means they are producing a good with a very elastic demand curve and these businesses would have had trouble if there was an input price shock due to any cause, not just a tariff. So the tariff in this case we

      • by dryeo ( 100693 )

        Some of those small businesses go out of business not because they can't afford the tariff-ed goods, but because the goods just aren't available. Think of a shortage of aluminum creating a shortage of beer cans with the big breweries locking up the supply. Lots of small breweries go out of business.
        Tariffs are great for tilting the playing field.

        • Why would a tariff make a good no longer available at all? This is an honest question - if consumers of goods to which a tariff apply are willing to pay the higher cost to have it imported, why would there be a shortage? If there are shortages due to an imposed tariff, what causes the shortage? Is the assumption that the reduction in demand for affected goods will cause the foreign suppliers to simply close up shop?

          • by dryeo ( 100693 )

            Good question. I did see that there was a shortage of beer cans after the tariffs went in. I think there, the aluminium was being shipped across the border so often that the tariffs became way too high. There's been a lot of problems like that, both with aluminium and steel. Steel is interesting as it can cross the border quite a few times which is why Canada is both the biggest exporter and importer of steel with America.
            There's also the shock value when unexpected tariffs happen, companies and shippers sl

      • by shilly ( 142940 )

        I thought we were all for consumption taxes instead of income taxes?

        Why would you think that? Consumption taxes are notorious for hitting the poor hardest, for multiple reasons, including that one of the benefits of being rich is that you can save a larger proportion of your income than poor people, who need to spend nearly everything they earn on the basics of daily living.

    • by Kohath ( 38547 )

      If you specifically rely on Apple products for your daily life then you have really fucked up by "putting all your eggs in one basket".

      Everyone should have 6 or 8 bizarrely patched baskets that they have to regularly troubleshoot and repair, and that periodically drop a few of your eggs on the ground.

    • by gtall ( 79522 )

      Yep, okay people, please go out and buy at least two smartphones from different manufacturers. Oh, and be satisfied with the CrapWare MS produces.

    • Apple is simply letting people know that the coming cost increases are not due to Apple raising their prices but rather because of government interference in the supply chain.
  • by Walter White ( 1573805 ) on Saturday September 08, 2018 @08:50AM (#57275028)

    We all know that Apple is operating on the thinnest of margins.

  • i find it rediculous that a company with a bazillion dollars in the bank cant eat most of the impact. geez, how much is enough for these companies?
    • What's the problem ? It increases the exclusivity of Apple products. Everybody's happy.

    • In the same way that I find it ridiculous that if you made money last year so why don't you pay more for everything you buy.
      • I'd be totally fine with that, except it isn't feasible without some central clearing house for prices. I've always said I'm prepared to pay taxes (or prices) proportionate to the money I make. It wouldn't be fair to the rest of the country to do otherwise.
        • I'd be totally fine with that, except it isn't feasible without some central clearing house for prices. I've always said I'm prepared to pay taxes (or prices) proportionate to the money I make. It wouldn't be fair to the rest of the country to do otherwise.

          Except that is entirely your choice. If you choose not to do so, what then?

  • by NikeHerc ( 694644 ) on Saturday September 08, 2018 @09:03AM (#57275062)
    What a load of Apple crap: "... increase the cost of Apple products that our customers have come to rely on in their daily lives." Apple, stop buying from the ChiComms! Buy American!
    • Please show Apple which American plant where they could source their manufacturing?
    • by gtall ( 79522 )

      Yeah, every country should build and consume their own stuff. None of this trade mumbo-jumbo to reduce duplication. What the hell are you people thinking? Only buy American!! Now, about all that electronic equipment built in the U.S. surely you can find it. If not, wait 10 years until the U.S. duplicates China's manufacturing in the U.S. Make America Stupid Again.

    • Apple, stop buying from the ChiComms! Buy American!

      I'm sure they'd be happy to but first:
      Americans, Build American
      Americans, Pay for American.

      You can't get what you want without those two in place. It's the fundamental reason for your industry's downturn in the first place.

  • What exactly did you think tariffs would do?
    Raise tariffs, raise taxes, increase regulation, they all get passed on to the consumer.
  • Apple would be better off talking to Chinese officials about the need for a trade deal. Or Apple will have to shift some production out of a China.

    Apple customers won't be freaking out and calling their congressman about paying an extra $10 to cover tariffs.

    • Why is it on Apple to try to fix a political situation that they didn't cause? Also what are the Chinese manufacturers suppose to do other than blanket lower their prices unilaterally as Apple is not the only company affected. The companies that make Apple stuff makes stuff for many American and international companies.
      • by Kohath ( 38547 )

        Why is it on Apple to try to fix a political situation that they didn't cause?

        They can either help try to fix it or surrender to it and be a victim of whatever happens.

        Also what are the Chinese manufacturers suppose to do other than blanket lower their prices unilaterally as Apple is not the only company affected. The companies that make Apple stuff makes stuff for many American and international companies.

        Chinese manufacturers might want to suggest to the government that they negotiate a deal.

        • They can either help try to fix it or surrender to it and be a victim of whatever happens.

          So then you'd argue Dell and HP and other do the same then? They use some of the same plants Apple uses.

          Chinese manufacturers might want to suggest to the government that they negotiate a deal.

          So now you're saying is that Chinese manufacturers have to give in to whatever a foreign power says because . . .

          • by Kohath ( 38547 )

            So then you'd argue Dell and HP and other do the same then? They use some of the same plants Apple uses.

            Yes.

            So now you're saying is that Chinese manufacturers have to give in to whatever a foreign power says because . . .

            They should talk about a deal. Because not talking is working out worse than talking. And a deal might work out better than the alternative situation of not making a deal.

            If they don't want to pay tariffs, how else can they avoid paying tariffs?

            • They should talk about a deal. Because not talking is working out worse than talking. And a deal might work out better than the alternative situation of not making a deal.

              . There are deals in place. With this President, no deal is ever safe as he changes his mind on a whim.

              • by Kohath ( 38547 )

                There are deals in place. With this President, no deal is ever safe as he changes his mind on a whim.

                That's an interesting perspective, but how does it lead to a course of action?

                • It's like dealing with a toddler. Any deal or plans that anyone will try to make may be useless. For now companies have to plan for two contingencies: 1. Nothing will change. 2. Everything will change.
                  • by Kohath ( 38547 )

                    Good luck with that. And you will need it, because you have abandoned cause and effect decision-making in favor of name-calling and surrender to the tide of events. The rest of us who haven’t given up will continue to try to improve by making good choices.

  • How about working for half the money, like the rest of the world, and normalizing your prices. A phone with the same specs is $200-500 everywhere else, but cost $500-1000 in the USA. Same can be said for everything else, rent, healthcare, internet. Of course Apple will never produce at you, wages are ridiculously over-inflated.
  • whether it is our government or another government Will be passed directly through to the end user Whether that end user is another business or the consumer.
    Taxes, Tariffs, the Cost of Fees, Laws and Regulations, etc Why? because a business without a positive profit margin may not have a future.
    A business can not manage a cash burn rate forever.

    A business will try to keep it's profit margin stable or better yet growing!

    Next point, why should Americas markets be open! If a trading partner does not kee
  • America is the largest consumer market in the world. All this does is open the door for another American tech company to come in and beat Apple only this time they can use American tech workers to do it.
  • by Tailhook ( 98486 ) on Saturday September 08, 2018 @05:06PM (#57277260)

    Not much else to say there.

    Except that perhaps the future is not jeopardized in the least if tech bros buy new phones at a lower frequency and China has less revenue to build a blue water a navy. The cheap stuff from China model — enabled by disposable workers and piratical regulation-free manufacturers — is a shitty way to do things and any impedance we can offer is good. We can't trust China, Indie, et al. to perform our manufacturing without filling the oceans with plastic and emitting tons of illegal CFCs and all the other heinous shit they do, so let us unwind this sad, shameful arrangement.

    Just more winning as far as I am concerned.

  • Any price increases will only impact the USA, the rest of the world will continue with no changes.
  • They will raise prices so save margins. Then move production to US to save costs. Then if price hike had no impact on sales... do nothing.
  • I wish Apple had the balls to show us what the tarriffs actually cost. They should show their prices like:
    Phone price: $999
    Tariff: $100
    Price you pay: $1099

Keep up the good work! But please don't ask me to help.

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