Analysts say Trump's new tariffs on China cut could iPhone sales by 8 million

[left-of-center2012]

If the Trump administration makes good on its latest tariff threat, Apple would be a big loser .

The tariffs could knock down iPhone sales by between 6 million and 8 million in the United States next year, said technology analyst Dan Ives, of Wedbush Securities, in a note to investors Friday. That could cut Apple's earnings by 4% in 2020. He called the tariffs a "gut punch for Apple."
"Apple is clearly caught in the crossfires between DC and Beijing," said Ives, who called Apple "the poster child" for the trade war.

President Donald Trump on Thursday threatened a 10% tariff on the remaining $300 billion of Chinese goods that are not currently subject to tariffs. Those goods, which will include laptops, smartphones and other technology, will hit the American tech industry particularly hard.

Apple may be able to move between 5% and 7% of iPhone production to India and Vietnam over the next two years if the tariff situation spirals, he said. But Apple couldn't abandon China entirely, and iPhone customers will be left paying more, delaying their purchases or looking for a different kind of smartphone.

https://www.10news.com/news/national/analysts-say-trumps-new-tariffs-on-china-cut-could-iphone-sales-by-8-million

[hlthe2b]

1. Yet his idiot followers BELIEVE him when he says that CHINA will pay for it...

just like Mexico will pay for the wall. How did our country wind up with so much blatantly and willfully ignorant people?

[BSdetect]

2. Time for Tim Cook to be very vocal about this idiocracy.

Staying silent as fascists fuck up your society is not a good idea.

[tanyev]

3. Time for Tim Apple to speak out against Donald Kremlin.

[real Cannabis calm]

4. Doesn't Trump plan to win the election on a great economy platform?

The US economy not going to be as great, as current stock-market news indicates.

[dalton99a]

5. The guts of an Apple iPhone show exactly what Trump gets wrong about trade

To see how much value China is actually getting, let’s examine an older model of the iPhone – the iPhone 7 – a little more closely.

Start with the most valuable components that make up an iPhone: the touch-screen display, memory chips, microprocessors and so on. They come from a mix of U.S., Japanese, Korean and Taiwanese companies, such as Intel, Sony, Samsung and Foxconn. Almost none of them is manufactured in China. Apple buys the components and has them shipped to China; then they leave China inside an iPhone.

So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the factory-cost estimate of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6% of the total. That includes a battery supplied by a Chinese company and the labor used for assembly.

The other $228.99 goes elsewhere. The U.S. and Japan each take a roughly $68 cut, Taiwan gets about $48 and a little under $17 goes to South Korea. And we estimate that about $283 of gross profit from the retail price – about $649 for a 32 GB model when the phone debuted – goes straight to Apple’s coffers.

We believe you’d get a similar a breakdown from newer iPhones as well.

In short, China gets a lot of low-paid jobs, while the profits flow to other countries.

https://theconversation.com/the-guts-of-an-apple-iphone-show-exactly-what-trump-gets-wrong-about-trade-119223