Tuesday, July 5, 2022

Apple to absorb tariffs instead price transfer to the customers


Mehboob Ali Shaikh
Mehboob Ali Shaikh is the Bureau Chief of World News Observer. Based in Canada, working with Toronto 360 TV. Mehboob has accomplished Years of experience in print and broadcast media. He is an active participant in Social media strategies, including Facebook, Twitter and Skype.

The latest round of tariffs imposed by the Trump administration on products and goods imported from China took effect on Sunday, affecting some of Apple’s most popular products.

The 15% increase on Chinese imports will affect Apple products such as watch Apple Watch and headphones, AirPods and device HomePod and some headphone models of Beats.

According to Bloomberg, computers will also be affected iMac from Apple and the necessary components for iPhone repair and the storage components, tariffs were introduced in the Federal Register days earlier on Friday.

The tariffs on iPhones will not be affected until December, as Apple is expected to introduce three new smartphone models of iPhone in September.

It is unclear whether Apple will absorb the tariff or transfer it to consumers, making affected products more expensive, and analysts at Morgan Stanley believe Apple is likely to absorb the tariffs, the company wrote in a report released in May.

Read also: Tariffs on Chinese goods will cause a possible blow for Apple

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