Trump has agreed with China: the iPhone is not expensive

For several years the US government, in particular, Donald trump is threatening to impose duties on imports from China of Apple equipment in the amount of 10-25%. The main objective of this measure is to force the Cupertino’s company is to move production of the iPhone in the United States. Also plays a role in the aggravation of relations between the US and China, as the closure of production facilities Apple can deprive thousands of people of work. But at least for a while you can breathe easy – for now Apple won’t have to pay a fee of 15% on the importation of iPhone, iPad and MacBook.

It seems that Tim cook was able to negotiate

The US President Donald trump has signed a trade agreement with China, writes Bloomberg. Within the document, Apple may continue to import electronics without paying additional fees. It seems, no wonder Tim cook not so long ago showed Trump American plant for the production of the Mac Pro, and even announced the construction of a new campus. Thus, Apple has shown that not all of its production is tied to China (but, in fairness, most are in China).

A month ago, cook has shown to Trump Apple factory in the US

iPhone is not expensive

That Apple will have to pay a fee, it became known in August, the American President was very resolute, but postponed the entry of innovations into force until 15 December to resolve the conflicts between the US and China. Now the price of iPhone is not threatened. According to analysts, if the two countries are unable to negotiate and sign a trade agreement, after the imposition of duties iPhone would be more expensive by about $ 150 — about 9.5 thousand rubles. Would you buy a iPhone in this case? Please reply to our Telegram chat.

Of course, Apple could have to pay this fee and, therefore, to leave the pricing of their smartphones unchanged. However, in this case the profit of the Corporation would be reduced by 4-5 %, and the scale Apple is just a luxury.

However, Apple is not going to stop. The company wants to go ahead and cancel the import duty on Apple Watch, AirPods, iMac components and HomePod paid now.

Read also - Why Donald trump admires Tim cook

Apple CEO Tim cook spoke with trump on fees this summer, and reportedly made a “good argument”, arguing that the new tariffs will put Apple at a disadvantage compared to competitors like Samsung. Earlier this year, Apple also sent a letter to the White House, urging the administration to trump not to impose duties.

“Trump has done Apple an early Christmas gift. If this duty is introduced, it would be a serious blow for Apple and could have a serious impact on the supply chain and the demand in the festive season”, say experts from Wedbush Securities.

Why Apple cannot make the iPhone in the US

If Apple will concede a Trump and will transfer production of the iPhone on the territory of the United States, it will increase their retail price by 20-35% from the current level. Thus, assembled in USA iPhone 11 Pro in its base configuration will cost 1200 at the most favorable outcome to 1350 dollars — at the least favorable. This surge will further reduce sales of Apple smartphones, having the most negative impact on the company’s revenues. And the U.S. lacks qualified staff, able to deal with the management of production lines.

“If the United States, we will convene a meeting of the engineers we need qualifications, I’m not sure that will be enough to fill the room, — said earlier the cook. — At the same time in China, we fill them several football fields.”

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