45 minutes into the second half, the president of the United States, Donald Trump, signed yesterday a trade agreement with Beijing that cancel last fare round on products manufactured in China informed the Bloomberg. The news is especially a relief to Apple, as Apple is (narrowly) getting rid of a large fee that could hinder its holiday sales.
As we reported, the new tariffs should take effect on the day December 15th (yes, after tomorrow) and could add about $ 150 at the prices of iPhones. Contrary to what it has been doing with other products already being priced, the Cupertino giant would likely pass on these taxes to consumers, who have also benefited from Trump's decision, as Wedbush Securities analyst Dan Ives pointed out:
Trump gave Apple an early Christmas gift. If this rate had been approved, it would have been a major blow to Apple and could have caused a major problem in the supply chain and demand for the holiday season.
In fact, Ma's situation was far more complicated: if she passed on tariff costs to consumers, sales would fall; however, if it did not change the final price, the company would face a problem with its shareholders as $ AAPL's earnings per share could fall by about 4% next year. That was it: if the animal gets caught, if it runs the animal eats.
Apple is already paying additional taxes for Apple Watches, AirPods, iMacs, and HomePods but it is likely that even these rates will be reversed, according to Apple. Bloomberg. This is expected as the US-China deal includes a promise by the Chinese to buy more agricultural products from Uncle Sam's land, and all involving the trade war between the two countries on the basis of "toma l, d c".
More than the negative impact on the upcoming buying period, the deal certainly had the influence of multiple meetings between Trump and Apple's CEO, Tim cook, in this year. Last August, the US president said the executive would have made a “good point” by saying that the new tariffs on iGadgets would put Ma at a disadvantage compared to rivals like Samsung.
Since then, Trump has changed the tone of his talk about the Cupertino giant's products, which has culminated in this important (and liberating) decision for Apple's benefit. Now we have to follow the next episodes of this Tits fight and hope they will be even more positive.