Published Date : Aug 01, 2018
In the third quarter, Apple’s revenue has reached to US$ 9.55 bn from China, experiencing a 19 percent jump as compared to that of last year. However, the excitement for the rewarding revenue generation lasted until the investors expressed their concerns regarding the price rise for Apple’s product and market share in China.
Tim Cook, Apple’s CEO emphasized that the changing tariffs will create “unintended consequences” that will adversely affect the customers and the economy as well. He also added that this approach is not a justified way to modernize the China-U.S. relationship, and to what extent the new tariff will affect billions of Apple products. Cook added in saying that proper evaluation of potential consequences in relation to new tariffs will be done and concerned remarks will be submitted to the administration.
Earlier, the U.S. government affirmed that it would not levy tariffs on iPhones that are assembled in China. However, laptops and smartphones may face a marginal amount of difficulty during import tariffs. In the recent round of U.S., tariffs on Chinese goods worth around US$ 200 bn were estimated to affect various health tracers including Apple Watch. In July decisions taken consisted Apples’ watch and various other activity trackers such as Fitbit and connected speakers from Sonos can experience price hike. Apple can face 10 percent tariff on few of its devices if the tariff is effective by the fall. Although there is a 19 percent hike in Apple’s revenue, but a 27 percent decline as compared to the last quarter.