Apple is ready to absorb additional costs and tariffs do not increase prices for apple products

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Renowned Apple analyst Ming-Chi Kuo has released his latest investor note that reviews the consequences of the latest tariffs imposed on China by the Trump administration and the logistics of Apple’s supply chain. According to Kuo, Apple is ready to absorb additional costs and tariffs do not increase prices for apple products, at least in the short to medium term. Also, Kuo believes that Apple will work to increase its non-Chinese production so that it meets the needs of the US market so that additional tariffs can be avoided altogether. The new report comes just a day after President Trump set a new 10% tariff on $ 300 billion of Chinese goods imported into the United States.

As a result, Apple’s stocks are down 2%, as the company had previously said that such taxes could affect the prices of all future products. According to Kuo, Apple’s advanced production automation combined with its dominant market share in the US will help it stay afloat. With one of the most profitable product categories in the company’s portfolio, Kuo predicts that iPhone demand in the US will be fully met by its manufacturing facilities in India and Vietnam early next year. The demand for the iPad can be more easily met by non-Chinese facilities for high-degree production automation.