IPhone in the United States-is at least $ 700 more expensive? Currently President Donald Trump wants to implement hard tariffs against China and other apple manufacturers. At Apple Headquarters, now you are considering how it is best to react to it. China, in the country in which most iPhones are made, are used for import imports with 54 percent inch. This will be bad for the end customer prices of the smartphone (or Apple’s margin). But alternative areas such as Vietnam (46 percent) or India (26 percent) are also burden. Apple’s headquarters of European Union in Ireland will be 20 percent. according to a Bloomberg report Apple is now considering screwing on prices – also because this subject is present in the media. But it probably doesn’t remain so: the company tries to reorganize its supply chain to save the tariff.
Good wire
In the first step, Apple will probably try to reduce prices with suppliers. Component manufacturers and manufacturing partners have to adapt to hard negotiations. Sometimes Apple will also swallow cost, which reduces margin.
After all, Apple’s boss Tim Cook also has a good relationship with Donald Trump for his previous term. This once helped the group to avoid punitive tariffs against China. But Apple created manufacturing in other countries, especially in India.
Indian production for the United States completely?
This is the right country that Apple can help not do many imports as duties. Currently there are plans to manufacture more equipment in India, of which the import customs duty is only 26 percent in questions, reports that Wall Street JournalTherefore, this idea is to send almost all iPhones in the country to the United States.
Currently this year the production of 25 million units is planned, of which at least 10 million should go to the Indian market. Apple probably requires around 50 million units, so Indian production alone is not sufficient. However, Apple tries to increase production. Customs fall only when goods are introduced in a country. Under Trump, it should be practically implemented in every country in the world, with various high sentences that the importer must pay.
(BSC)
