Apple is currently not affected by US rates



The recent salvo of rates United States products imported from ChinaThey do not affect Apple and other technology companies, but they can also cause other problems.

From next Monday, Washington will impose tariffs 10% of Chinese products for $ 200,000 million, but includes products such as smart watches or devices managed via Bluetooh, so that neither Apple nor Fitbit will be harmed.

But in view of the trade war between the two countries, there is a latent reaction from the Chinese, which could be counterproductive for the American giant.

"Electronics manufacturers have short-term lighting but this is a chess game and we do not know who will be the first to be neglected ", says Patrick Moorhead of Moor Insights & Strategy.

And if China wanted to carry out an offensive, it would be almost devastating for Apple because "Most income and Apple's profit comes from the iPhone, which is manufactured almost exclusively in China, "Moorhead said.

The commercial war concerns United States especially in the technology and electronic goods sectors, just when the end of the year arrives at the end of the year, which is important for manufacturers and retailers.

Rates "will cause permanent damage to communities across the country," he said. Dean Garfield, president of an American business association that includes Apple, Amazon and other major technology companies.

"China has to change, but this is not the way to obtain the necessary access Chinese market. Many rates not only penalize consumers, manufacturers and companies of all types in the United States. They also reduce the ability to negotiate with the Chinese and solve business problems, "he said.

The technology consumer association (CTA), which represents about 2,000 small companies in the technology sector, described as "bad policy" the application of tariffs, even when exceptions are made for some products.

"We are particularly concerned about retaliation prices printed circuitsrouters and internet network equipment, "said CTA President Gary Shapiro.

"This will stifle our leadership in 5G (wireless network technology), create a load on the internet and generate uncertainty in businesses," he said.

Apples resistance to rates

Washington has excluded smart watches and other items from tariffs connected to the webafter Apple had warned about the negative impact.

"Rates will include the costs of our activities United StatesIt will distract our resources and put Apple at a disadvantage compared to its competitors, "the company said in a note sent to the US Trade Representation Office on September 5.

"More generally, rates will lead to higher prices American consumer, will reduce overall US economic growth and they will have other unintended consequences. As a result, tariffs will ultimately lower the economic benefit we generate for the United States, "Apple said.

Gene Munster, from the consulting firm Loup VenturesHe said last week in a letter to his customers that Apple would not be badly hurt by rates. And he gave as an example that objections for smart watches or connected headphones will only reduce Apple's annual revenue by 1%. others predicted that trade frictions are likely to decline.

"We believe that in two years those rates will be gone," he said.

He pointed out, however, that some technologists secretly applaud & # 39; for the difficult position of Trump because over time they can correct the imbalance in trade between the two countries.


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