tech2 News StaffAug 19, 2019 10:17:24 IST
Noted Apple analyst Ming-Chi Kuo recently stated that Apple will be able to absorb the 10 percent tariffs that US President Donald Trump wants to impose on hundreds of billions of dollars worth of products sourced from China. The bulk of Apple's portfolio – including iPhones, iPads and AirPods – are made in China, which means that Apple is looking at a 10 percent price hike across the board.
While Apple will absorb the tariffs for now, Apple CEO Tim Cook has expressed concerns that arch-rival Samsung with its global manufacturing base will be less affected and will rake in a greater share of profits. Reportedly, Cook is now worried that an extended trade war will put Apple at a competitive disadvantage.
As reported by Bloomberg, Cook met Trump over dinner and discussed his concerns. Trump was apparently sympathetic to Apple's plight and stated that Cook made a "good case" about the struggle it will face when dealing with Samsung in the future.
While the tariffs are not yet in effect, they are expected to come into effect by December this year. Before that happens, the US and China are gearing up for a trade meet in September where this and other issues will be discussed.
On a related note, Apple is also gearing up to launch its 2019 iPhone lineup in September.