Customs duties, which the U.S. government wants to tax goods Apple will have more than a negative impact on its development. This is stated in the official letter to the company, addressed to the administration of the President of the country. The appeal says that the benefits that will bring fees to the state Treasury, to be short-lived phenomenon, because in the end, States risk losing much more than get. After the introduction of fees will lead to a reduction of sales of proprietary Apple technology and, as consequence, decrease in tax deductions.
“The introduction of customs duties in connection with Apple products will lead to a reduction of the contribution the company makes to the US economy. They will weaken the competitiveness of Apple technology on the world market. Apple, being one of the largest corporations and one of the largest employers, is proud of the United States. We provide more than 2 million jobs in all 50 States. In addition, Apple is the largest taxpayer of the United States, annually paying into the Treasury billions of dollars annually,” reads the letter.
More expensive iPhone
In Cupertino understand that the introduction of customs duties will inevitably lead to higher prices of its products in the U.S. market. According to analysts ‘ estimates, if the new tariffs will enter into force, the basic iPhone XS will rise from 999 to at least 1142 dollars, not counting taxes. It will inevitably lead to a reduction in demand and, consequently, reducing the income that a company receives from sales of branded electronics and, therefore, can invest less in the development of future technologies.
Of course, the letter in which Apple asks U.S. not to impose new duties, absolutely does not mean that the company has no backup plan. This week it became known that in Cupertino are working on the issue of relocation of production to 30% of their devices from the US to India or Brazil. These countries were chosen because of the established supply schemes and running production lines running partners. Foxconn, a major Assembly partner of Apple, has already expressed willingness to engage in the production outside the territory of the PRC.
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