The price of the iPhone will not grow due to CEO Tim cook

When Tim cook CEO of Apple, many reacted to this appointment with some scepticism. Obviously, the role played by the almost complete absence of the new CEO in the media field. If Steve jobs was not only involved in the creation of new products Apple, but also presenting them, then cook in involved in the boring financial conferences, and therefore was unknown to the General public. However, over the years of being last on a post of the General Director of the company, it became clear that he not only worse jobs, and in some ways even better.

According to CNBC, the Tim cook has to convince Donald trump not to impose Apple products to import duty, the introduction of which was planned for September. This conversation between the heads of Apple and the USA was held last Friday. They met for lunch to discuss the impact of the duties on the position of Apple in the market. At the same time, which is quite unusual, the initiator of the meeting was made by Tim cook himself, who is obviously very worried about the prospect of more expensive equipment of the company.

Prices Apple

Tim cook explained to Trump that the introduction of fees will have on Apple the most negative impact, since higher prices on branded products, the company will seriously undermine its ability to compete with Samsung. In fact, cook said that Samsung is the main strategic adversary of Apple. Therefore, if the iPhone will get more expensive because of duties at least 10%, this will lead to a sharp decline in its attractiveness, with the consequent increase in the demand for devices Galaxy.

See also: iPhone can become even more expensive

Surprisingly, given cook’s arguments worked, and trump has agreed to waive the imposition of duties in respect to the iPhone and iPad until at least December 15. It then starts a new wave of import charges that apply to Chinese products. However, take away from the impact of all the Apple CEO Tim cook failed. Some Mac, AirPods , and Apple Watch will be subject to duty on September 1 and, therefore, likely to rise by 10%.

The Apple prices in America and Russia

If Apple decides not to absorb the fees and will shift them to consumers, should expect higher prices for equipment, the company not only in USA but also in all other countries. This is due to the fact that retailers are buying grey Apple products mainly in the United States. If purchase prices rise, so will grow and the retail price. And then it’s simple: growth gray prices will lead to the fact that official retailers will no longer make sense to compete with serovatam, and they too raise prices.

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