Apple, the largest company in the United States for market capitalization, is dealing with the intense commercial war between the United States and China. Analysts believe that the technological giant runs out of clear options in the short term to mitigate the impact of tariffs on Chinese imports.
CNBC reports that, despite the temporary break of President Donald Trump in many of his reciprocal tariffs, providing relief to some companies and investors, Apple does not have such lucky leg. The Silicon Valley technology giant is largely based on supply chains in China, which has been its rate of rates accumulated by Sen in the GOOD climb to an internal of 145 percent.
Experts emphasize that the United States-China negotiations remain the most critical variable for Apple, since the company’s dependence on Chinese manufacturing leaves it vulnerable to intense commercial tensions. “Apple could go back many years through thesis tariffs,” said Dan Iives, head of global technology research at Wedbush Securities, adding that the company had “turned its boat in the ocean without life rafts.”
Althhehe Apple has been working to diversify its supply chain away from China for years, most of its iPhones sent to the US. UU. They still originate in the country. According to OMDIA data, almost 80 percent of the 77 million iPhones sent to the United States last year came from China. The research firm estimates that, according to current rates, Apple may have to increase prices on phones sold to the US. Uu. From China in about 85 percent to maintain its margins, a movement that would not be a financial viable for the company.
In an effort to quickly mitigate the impact of tariffs, according to reports, Apple Airported 600 tons of iPhones, or up to 1.5 million units, from India to the United States before the new Trump Tok tok effect. However, it is not clear how long such reservations could last, especially as consumers increase iPhone purchases or higher prices.
Apple’s medium -term strategy has focused on reducing exposure to geopolitical risks and related to the production and exports of India’s iPhone. While Trump’s high temporal can bring tariffs to India to a base or 10 percent line, increase sufficient production in India to meet demand could lead to at least one to two years and are not exempt from tariff risk.
Analysts suggest that Apple’s best option in the face of tariffs is to attract the Trump administration for an exemption of rates for China imports while continuing to increase their diversification efforts. The company received some exemptions of the first Trump administration, and some believe it could happen again, given Apple’s recent commitment to invest $ 500 billion in the USA. UU. And create 20,000 jobs.
However, also with a commercial agreement or tariff exemption, some analysts argue that Apple may not be able to avoid the commercial effects of advertisers. “Only a 10 percent reference fee raises a huge challenge for Apple,” said Craig Moffett, co -founder and senior analyst at Equity Research, Moffettnathanson.
Read more in CNBC here.
Lucas Nolan is a reporter of Knitbart News that cover issues of freedom of expression and online censorship.
