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In the US: Apple Product Prices Should Not Be Affected by New Rates

More than a great informant about upcoming news gadgets from Apple, the so commented analyst Ming Chi Kuo It also offers, at one time or another, its hints about issues surrounding the Cupertino giant.

We recently reported that US President Donald Trump announced a new tax round that could affect Apple products made in China and sold in the US market. But for the analyst at TF International Securities, that does not mean that iGadgets should be more expensive there.

Kuo suggested that Apple has prepared well for this scenario (which has been possible for months) and expects the company to "absorb most of the extra costs" in the medium term. If found, this means that the prices of Ma products and the number of shipments to the US market will remain unchanged despite the tariffs.

If sanctions against China persist for a long time, the analyst believes Apple's non-Chinese suppliers "should meet most US market demand in the next two years," as Foxconn executive Young Liu imagined.

In recent months, Ma has been expanding its manufacturing in India and Vietnam as part of its strategy to diversify production beyond China. Specifically, Kuo believes that manufacturing of iPhones, iPads, and Apple Watches outside China will already meet US demand next year, while Mac production should not reach the optimal level before 2021.

Kuo's predictions, however, are in line with the position recently defended by Apple CEO Tim Cook during the fiscal third quarter 2019 financial results conference. moving part of the company's production outside of China, he himself would not invest much in it: "Parts come from everywhere, including the US."

via AppleInsider | image: Gorlov-KV / Shutterstock