These are the Apple devices that will be hit by a 15% tariff starting tomorrow

These are the Apple devices that will be hit by a 15% tariff starting tomorrow
Tomorrow is the first day of a new month. Many look forward to September because the oppressive summer heat is dialed down and Autumn begins. The baseball playoff chase gets more exciting and the NFL kicks off a new season. But this year, something new takes place starting tomorrow, September 1st. 15% tariffs will take effect on $300 billion worth of Chinese goods imported into the U.S. To be clear, tariffs are merely an import tax that U.S. companies pay. These firms can absorb the additional cost of the tax, lowering profit margins and sending stock prices plummeting. Or, these companies can pass along all or some of the tax to consumers in the form of higher prices which can also damage the economy.

Originally, the Apple iPhone and other handsets imported from China were to be slapped with the 15% tax on September 1st. However, President Donald Trump decided to hold off taxing these products until December 15th so that higher prices won't slow down the economy during the holiday shopping season. However, not all products received this short reprieve and starting tomorrow, there will be some Apple devices getting taxed. While the tech giant designs most of its products in the states, the vast majority are manufactured in China by contract manufacturers that include companies like Foxconn, Pegatron, and Wriston. Apple does produce some iPhone models in India, but certainly not enough to make up for any meaningful amount of Chinese production.

If Apple decides to eat the cost of the tax, the retail prices of the company's devices will stay the same

Starting tomorrow, two of Apple's most popular products, the Apple Watch, and the AirPods, will be subject to the 15% import tax along with the company's headphones and other products. Apple could decide to eat the extra cost, which it already does for certain iPhone and iPad cases, and consumers won't notice any changes as far as pricing is concerned. But if Apple decides to share the pain with its customers, Americans will be digging a little deeper into their pockets to buy these products.

The 15% tariffs have been entered into the Federal Register (via Bloomberg) which means that starting tomorrow the following devices from Apple will be taxed at 15% once they enter the U.S.:

  • Apple Watch and Watch bands.
  • AirPods Wireless Bluetooth earbuds.
  • HomePod smart speaker.
  • Specific headphones under the Beats name.
  • Apple iMac computers.
  • Repair parts for iPhones.
  • Nand flash chips, used for iPhone storage.
The devices that are listed above made up at least 10% of Apple's revenue last year. The Apple Watch and the AirPods are two devices that are part of Apple's fast-growing wearables segment that delivered 48% growth from last year's fiscal third quarter to the same three month period (April through June) this year. Some analysts consider this unit to be the one that will deliver the most powerful growth inside Apple; however if the two most important devices inside this unit are crippled by higher prices, that changes the outlook for the segment and for the entire company. Again, if Apple decides to eat the entire tax itself, consumers won't notice any changes pricing-wise.



1. apple-rulz

Posts: 2198; Member since: Dec 27, 2016

Good job pissing off the entire world, POTUS!

12. rouyal

Posts: 1583; Member since: Jan 05, 2018

You don't speak for the world. Get down from that high horse.

14. tedkord

Posts: 17482; Member since: Jun 17, 2009

He doesn't need to speak for the whole world, they've spoken for themselves - he's a joke. All except the dictators he sucks up to and the one who owns him (Putin).

32. rouyal

Posts: 1583; Member since: Jan 05, 2018

Don't fool yourself. Crybabies are usually the loudest.

43. DarthJarJar

Posts: 67; Member since: Feb 01, 2018

Exactly. So loud that his childish tantrums are seen across the world. What a f**king idiot Trump is.

48. audibot

Posts: 687; Member since: Jan 26, 2017

this is about china ripping off-patent not you getting your watch, you people used to care about apple being copied and now the us has a president with a spine to say no more

47. audibot

Posts: 687; Member since: Jan 26, 2017

plus the iffols will always pay out thew aa for apple products just wait untill they see they have to buy all new dongles for the usb c to older crap they have

24. oldskool50 unregistered

Because we know you love that dog. Well once he isn't President, you can join him in his orange jumpsuit and bracelets.

33. rouyal

Posts: 1583; Member since: Jan 05, 2018

He won't be president in, what, 2024? Or you still clinging to pathetic left wing conspiracy hopes like the Mueller report?

38. tedkord

Posts: 17482; Member since: Jun 17, 2009

No, they are clinging to the fact that he's got historically low approval numbers, and is considered a joke by most Americans.

49. audibot

Posts: 687; Member since: Jan 26, 2017

let me guess msnbc told you that with a poll of 3000 2050 of dems and 50 of cali republicans get over it you cry babies your all hypocrites

60. oldskool50 unregistered

I know you're stupid and inshouldnt waste time replying, but he is losing in the polls in all the states he won last year. Without those States, he is gonna lose. He isn't going to get a 2nd term dummy.

23. oldskool50 unregistered

Haha. You mad? You and the Trump have so much in common. Considering that some of these Apple Watches cost $900 and they aren't even worth it, I say YES. Raise the prices on them so they don't sell anymore of that worthless junk to people. And just so you know, I consider all smart watches to be worthless junk. Fitness bands are specific and much more useful and are priced reasonable for the most part. Though they can be useful, they are wayyyyyy overpriced regardless of brand. What Samsung wants for their watches is excessive too. And even if I have one, they are still wayyyy overpriced even on eBay where I got mine for a lower price. I hope the tariffs go up on all smartwatches and make them so expensive the whole product category is demolished.

28. brady5371

Posts: 12; Member since: Oct 18, 2018

Fee points - 1. The US has been screwed over by other countries for over 50 years. Finally we have a president that wants to level the tariff playing field. 2. NO one needs a damn electronic toy (cell phone, laptop, etc) 3. Apple and other manufacturers are making HUGE profits, so let them absorb the increase in tariffs! Finally, those of you bitching about POTUS, get some education so that you don’t continue to make yourselves look ignorant!

29. tedkord

Posts: 17482; Member since: Jun 17, 2009

Odd that you'd say that, since studies clearly showed during the last election that more educated one was, the less likely he was to be a Trump supporter. That's why he loves the poorly educated, as he stated.

34. rouyal

Posts: 1583; Member since: Jan 05, 2018

The same "studies" and "polls" done by the same people that put Clinton at 95% chance of winning.

39. tedkord

Posts: 17482; Member since: Jun 17, 2009

The polls were very accurate. Nationally, Clinton was ahead by about 2-3%. That's what she won the popular vote by. Several states were within the stated margin of error, and he barely won those. Biden is up by 10% over Trump, which is more than double the margin of error. There hasn't been a single poll where Trump is beating Biden, not even Fox or Rasmussen, which are wings of the GOP.

51. audibot

Posts: 687; Member since: Jan 26, 2017

yes the same states that got caught bussing people in and having illegals vote with no id and still wont give the recounts up because they know they would all go to jail, we rep's dont cry and dont get poll calls i got a poll call from cnn 5 yrs ago and i wasnt even a citizen so i know the polls are 100% fake

50. audibot

Posts: 687; Member since: Jan 26, 2017

how original hate speech and racist remarks from a dem

45. audibot

Posts: 687; Member since: Jan 26, 2017

its not the world idiot just a few things that dont cost that much anyways and the phone is in December and with the lower cost of 34% to make it they could eat it and still make profit, dont forget this is a iphone that not many people are looking to switch for that will be in 2020, or they could make those items here in there own factory in the middle of the country and give the people of that state a living wage as you cry about all the time.

2. tedkord

Posts: 17482; Member since: Jun 17, 2009

I don't understand. Trump said the Chinese are paying the tariffs, not the US consumer. So why would it slow down the economy? And, if we're paying them, can't he get Mexico to pay them for us?

35. WieXXX

Posts: 25; Member since: Feb 03, 2019

whoa, I can't believe what I see.

40. tedkord

Posts: 17482; Member since: Jun 17, 2009

What's that? Trump lying? Yeah, THAT'S hard to believe.

62. WieXXX

Posts: 25; Member since: Feb 03, 2019

here, let me explain. Apple manufacture iPhone in China, then it imports the iPhone from China to USA. And because of that Apple has to pay for the import tax for each iPhone. And because the tax price was increased by your president, it means Apple has to pay more for the import tax. But Apple wants to gain same benefit as before(if not more), Apple has to increase the iPhone price, and THIS what hurt the economy. I hope this help

46. audibot

Posts: 687; Member since: Jan 26, 2017

terd if your that thick in the head you shouldnt be talking about things you dont understand.

3. iami67

Posts: 334; Member since: Oct 18, 2011

Always blaming POTUS!! This is a american company support your country and have your products made in house. Dont be cheap. America needs jobs too.

4. Awalker

Posts: 1986; Member since: Aug 15, 2013

He is to blame. He's taking money out of the hands of Americans. And are you of the opinion Americans don't have jobs?

6. Alcyone

Posts: 584; Member since: May 10, 2018

Good generalization. People can choose what to spend their money on. Many may just passs up a product if the price does increase. Not needing or using a tariffed product is the best option, if possible. These aren't essentials that people need to survive, they're disposable income for most. Just my thoughts.

52. audibot

Posts: 687; Member since: Jan 26, 2017

moron he does not get paid for being potus he donated that if you actually know anything other then Rachels face

9. Rocket

Posts: 709; Member since: Feb 24, 2014

Do you want to pay 5x more for you beloved idevice?

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