Fantastic graphic from the WSJ. Trump just increased the price of a iPhone by nearly 60 percent. Obviously completely unsustainable so won’t be sustained. An American Liz Truss moment
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Presumably they will be much less expensive in Canada and Mexico. So just drive over the border and buy one.
(Prob not strictly legal given the lack of freedom in the US - but hard to prove.)
Add to that the fact that the US company producing the memory will probably have to raise its prices to compensate for the export business it loses due to retaliatory tariffs.
If they exempt these parts for iPhone then wont they legally have to exempt these things for all electronics? They cant just carve it out for Apple alone?
Trumps rhetorical outbursts about Americans subsidising the world is really America subsidising the tech billionaires when they offshored all their manufacturing for profit.
...? Yes it does? Memory is used to store running application information and is almost always much quicker to read and write to/from than storage memory. Current memory is also volatile - it loses all data when power is turned off.
I don't really argue about matters of taste, there's not much point!
My point is Simon is wrong if he thinks Trump won't sustain this because of political pressure. Getting reelected was never part of the plan...
Some question is one of two things:
1) Will Apple absorb the cost?
2) Will Apple bump the cost up even more than they already do to cover the cost?
I’m guessing it’s No.2 because Apple are never going to cover the cost, they gouge the pricing bad enough already!
Overpriced? Maybe. But they are great. And they last really long. I spend less money on my iPhones than a lot of people who buy cheaper phones.
Having said that, I am now looking for another brand because of Apple’s despicable behaviour. I don’t want Android (Google). Suggestions?
#NoMoreApple
The battery life is designed to be poor as enhanced levels of software are issued which is very frustrating
If you're looking for alternatives to Android and Apple phones, consider devices running Linux-based operating systems like Ubuntu Touch, Plasma Mobile, or postmarketOS
Thanks for the suggestions. I’ll look into them.
On average my IPhones last about six years. My current IPhone is more than 5 years old, but the battery is still okay, and I use my phone a lot.
Obviously I don’t care about being fashionable 😆
I not sure I understand the math. 34% tariff added to Chinese imports (parts) results in a 60% increase in product price!
That's before you understand that the cost of making an iPhone is probably only 50% of it's retail cost.
China already had a 20% rariff, effective tarrif now 54%, so little below 60%.
Price depends upon whether apple are willing to absorb any of the tariff from their markup.
The existing 20% is already factored in so not an increase.
Also, as I mentioned, the import/tariff cost is well below the RRP.
It's certainly an issue but the price won't rise 60% or even 34%.
The 20% tariff was imposed in two 10% blocks in February and March, and is not so much factored in as not really impacted yet as retailers will still have stock at the pre-tariff cost.
It is likely that apple will do as JLR are doing, pause/reduce imports for a period hoping the tariffs will go down
That’s not margin, manufacturing costs aren’t included and neither are R&D and software costs. iOS isnt free. Ifixit can only estimate component costs.
Trump's trying to blackmail the rest of the world by threatening to shoot the American consumer in the head.
The problem is, if the rest of the world doesn't yield, as they likely won't, American consumers will likely blame him for higher prices, not the other countries.
As soon as trumpet and his friends have bought up all the collapsed shares whereby he lifts the tariffs, they make absolute billions and everyone else poor.
How will that happen if there are no longer viable businesses associated with the collapsed shares? This tariff insanity will break supply chains and bankrupt former consumers of the businesses’ products.
Absolutely. The differences being that:
It took Trump longer to crash their economy. I mean 3 months?! Take your time Donald. (Truss would have been quicker still had the Queen not died)
There is nobody to fire Trump.
🤔 hmmmm …
This does thought.
- “I often sat at work & had a spread bet on the cricket”
- “Piers I am not a betting man”
- Rishi the “patriot” who ran away from commemorating the fallen at D-Day services.
I guess he’s not as radically right-wing as those following Trump. Sunak with a Nazi salute?😳
Fair. But, was that not the Tories simply determined to avoid an absolute trouncing at the ballot box & somehow remain in govt?
How much of a role did Hunt have?He had prev opposed Truss’ plans.
I have questions about just who holds the reins at the Tory Party.The IEA?The 1922 committee? Etc.
This pound-shop Tony Soprano has really put the frighteners on the American people. The Dems have caved and revealed just how hollow they are. The Deplorables have pissed all over them.
Increased the cost by 60% presumably. Up to Apple how much they increase the price. I'm sure Apple has a big fat profit margin on the sale of their phones. Other manufacturers may have less wriggle room.
Also this on what it would take to manufacture an iPhone entirely in the US. How on earth did these morons manage to break into the citadel of a great power? Great work from @joannastern.bsky.social
Comments
Presumably they will be much less expensive in Canada and Mexico. So just drive over the border and buy one.
(Prob not strictly legal given the lack of freedom in the US - but hard to prove.)
DUMB PHONE ERA
LET'S FUCKING GO
Current data suggests otherwise.
How sad 🤣🤣🤣
There's nothing unsustainable about that
My point is Simon is wrong if he thinks Trump won't sustain this because of political pressure. Getting reelected was never part of the plan...
1) Will Apple absorb the cost?
2) Will Apple bump the cost up even more than they already do to cover the cost?
I’m guessing it’s No.2 because Apple are never going to cover the cost, they gouge the pricing bad enough already!
Prices with and without tariffs!
If they all did this on day one, there would be revolution I think.
Having said that, I am now looking for another brand because of Apple’s despicable behaviour. I don’t want Android (Google). Suggestions?
#NoMoreApple
https://www.youtube.com/watch?v=IAoCfrqxIEg
https://volla.online/en/index.html
If you're looking for alternatives to Android and Apple phones, consider devices running Linux-based operating systems like Ubuntu Touch, Plasma Mobile, or postmarketOS
On average my IPhones last about six years. My current IPhone is more than 5 years old, but the battery is still okay, and I use my phone a lot.
Obviously I don’t care about being fashionable 😆
That's before you understand that the cost of making an iPhone is probably only 50% of it's retail cost.
Price depends upon whether apple are willing to absorb any of the tariff from their markup.
Also, as I mentioned, the import/tariff cost is well below the RRP.
It's certainly an issue but the price won't rise 60% or even 34%.
It is likely that apple will do as JLR are doing, pause/reduce imports for a period hoping the tariffs will go down
The problem is, if the rest of the world doesn't yield, as they likely won't, American consumers will likely blame him for higher prices, not the other countries.
Trump assumes they won't.
It took Trump longer to crash their economy. I mean 3 months?! Take your time Donald. (Truss would have been quicker still had the Queen not died)
There is nobody to fire Trump.
This does thought.
- “I often sat at work & had a spread bet on the cricket”
- “Piers I am not a betting man”
- Rishi the “patriot” who ran away from commemorating the fallen at D-Day services.
I guess he’s not as radically right-wing as those following Trump. Sunak with a Nazi salute?😳
How much of a role did Hunt have?He had prev opposed Truss’ plans.
I have questions about just who holds the reins at the Tory Party.The IEA?The 1922 committee? Etc.