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Analysts respond to Trump on iPhone tariffs

Analysts and investors have become quite nervous after learning of Donald Trump’s decision to impose 10% import tariffs on smartphones and laptops including iPhone and Mac.

Tim Cook managed to delay this imposition for several months thanks to a conversation he had with the president of the United States. But Donald Trump has broken this promise and has changed his mind by imposing this 10% tax , although Trump “worried” about the reaction of consumers by stating that this 10% increase in final prices can be perfectly assumed by consumers.

Analysts respond to Trump on iPhone tariffs
Analysts respond to Trump on iPhone tariffs

Within minutes of the President’s statement in The Wall Street Journal , Apple’s shares fell by more than 2% , so investors have not taken this threat lightly.

According to analysts, this news will add to the bad news that the company has received in recent weeks, such as the low demand for iPhone XS and XR starter kits. It is clear that this decision is still in a broader negotiation with China and the announcement is simply to be able to fuel these negotiations even more but we will have to wait and see if it ends up materializing.

If Donald Trump finally imposes this tariff policy analysts are already exploring how it will affect the price of the iPhone and Mac in the next 6-12 months and the demand for them. It is clear that Apple will have to absorb some of this tariff to prevent the whole consumer from paying it, because otherwise the price of the iPhone will reach a rather worrying maximum.

As I said before Trump wants to get Apple to manufacture on American soil, but according to Wedbush the company has a very complex production chain in China so it will be almost impossible to see a priori an iPhone factory in the USA.

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