US tariff: How Apple is currently dealing with price increases

Apple did not see any major effects in the first quarter of the punitive tariffs introduced by the US government. First of all, this had to do with the fact that certain electronics products from up to 145 percent are except – although there is a minimum fee of 20 percent. Second, Apple also managed to create a thick cushion of imported products in the USA early on. The iPhone manufacturer is currently still able to cushion the US tariffs. In the current quarter, however, this could no longer be the case and, if necessary, lead to price increases, say.

Initially only put up a little money

For example, CEO Tim Cook said at the quarterly figures communicated last week that Apple has formed a total of $ 900 million in provisions for this. At the same time, the growth forecast was restricted and communicated that it is unclear how the following quarters take place. This remains unclear whether the current exceptions will be preserved. In addition, Apple already pays 145 percent for some products from the accessories division if they come from China. The 20 percent that are already paying are the So -called Fentanyl Tariffwhich the Trump administration had decided in spring-on the grounds that China did not sufficiently prevent artificial drugs.

Apple’s $ 900 million (last $ 95 billion in sales in the first quarter) are now calculated in such a way that the group succeeds in paying 20 percent. The company is able to keep its iPhone prices stable in the United States-the only question is how long. At the moment, the company is trying to move as much production as possible for the US planned iPhones to India, since the group assumes that the American government will act milder against the subcontinent. But firstly it will take years for this to be implemented, and secondly, it is unclear whether this will stay that way in the long run.

Problem case tariffs on components

It is also conceivable that the US government begins to raise new punitive tariffs on the components that are so important for Apple. This has already been announced by the top position, and an investigation by the Trump administration is currently underway, which would like to become independent of foreign suppliers of products such as semiconductors, rare earths or magnetic materials. So it could be that Apple receives customs exceptions for its products, but the components and materials it contains are still documented with import levies.

In fact, it is astonishing that Apple has so far left its tariffs stable for US customers-other electronics manufacturers are already demanding more. For example, Sony strikes on his PlayStation 5 Pro $ 110, Microsoft wants $ 100 more for the Xbox Series X and DJI sells his VLOG camera Osmo Pocket 3 for a whopping $ 280 more. At Apple, an iPhone 16 still begins at $ 799 (plus, depending on the state, tax).