Apple is preparing for the upcoming customs duties on imported goods announced by the Trump administration, which could importantly affect the prices of the company's products in the United States.
According to Mark Gurman of Bloomberg, a technological giant is considering respective strategies to "relieve the blow" resulting from fresh tariffs, which include 54% of the rate on goods from China, 26% on products from India and 46% on imports from Vietnam.
The possible activities of Apple include negotiations with component suppliers and manufacturers to reduce production costs and partial coverage of additional expenses by the company itself, utilizing its 45 % profit margin. Short-term price adjustments can be introduced during the assessment period, but Apple has been avoiding crucial increases for years – the iPhone's base price from a higher shelf remains at $999 since iPhone X premiere in 2017.
The company besides continues to diversify the supply chain, although production in the US remains limited. In fresh months, Apple has increased stocks in the United States, which may hold the impact of the duties on prices – products already in the country are not subject to fresh charges. This allows increases to be postponed even to the launch of fresh iPhones in September.
Experts propose that Tim Cook, known for his masterful supply chain management, may search exceptions to duties as was the case in Trump's first term. Although Apple is not afraid to rise its prices, the precedence remains to minimise the impact of tariffs on customers, which may affect the company's competitiveness on the market.
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