President Donald Trump is having dinner tonight with Apple CEO Tim Cook; trade wars are on the menu

President Donald Trump is having dinner tonight with Apple CEO Tim Cook; trade wars are on the menu
Apple CEO Tim Cook told investors last week during a conference call, that the company could end up affected by the current U.S.-China trade war. The executive said that Apple is scanning a list of products that it imports from China; these items could be hit with tariffs of 25% or higher. While a report published by The New York Times back in June stated that Cook was promised by the White House that the Apple iPhone would not be affected by the trade war, that was later denied by White House trade advisor Peter Navarro.

Earlier today, the president tweeted that he is having dinner tonight with Tim Cook. Trump is currently on vacation at his golf resort in in Bedminster, New Jersey. The pair met at the White House in May as Apple's CEO tried to warn the president about the negative effects of a trade war between the U.S. and China.

While most Apple devices are designed by the company in Cupertino, they are assembled by contract manufacturers in China. Cellphones are the highest valued product imported into the U.S. from China, with over $70 billion worth of handsets shipped into the states from the country in 2017. That might be too big a target for the president to ignore. Should Trump decide to escalate the trade war with China even more, and include Apple's most important product, Apple will have no choice but to raise iPhone prices in the U.S. After all, the company's one trillion dollar valuation would be at risk if Apple decided to eat the cost of the tariffs.

Over $70 billion worth of cellphones were imported into the U.S. from China last year (figures are in thousands)

Over $70 billion worth of cellphones were imported into the U.S. from China last year (figures are in thousands)


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41 Comments

1. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

So Timmy is going to ask for an exemption, good luck asking someone for phone help that still uses a push button phone.

2. Phullofphil

Posts: 1724; Member since: Feb 10, 2009

This is a big deal. I have a hard time believing that they only make 8 bucks per phone profit. The math don’t pan out to billions in profit. If they sold 100 million phones that would only be 800 million in profit. They make a lot more than that profit. If they made 60 somthing billion profit decided by just cellphones that would be about 7 billion phones. Somthing don’t add up

8. Finalflash

Posts: 4049; Member since: Jul 23, 2013

4. LouisMariano5

Posts: 57; Member since: Sep 22, 2014

im not buying iPhones anymore.... so i could care less !!! BYE BYE

6. pnevma

Posts: 3; Member since: Aug 10, 2018

Where is the source for Apple only making $8.46 on each iPhone?? Searching online, I found that $8.46 as being what "China" gets from the iPhone (since it imports most of its components). I won't try to post the link because it'll probably be deleted, but its easy to find, search for "We Estimate China Only Makes $8.46 From An iPhone"

7. YoJerms77

Posts: 15; Member since: Apr 25, 2017

There's no way they only make $8.46 for each phone sold. If that's true then Apple wouldn't be a multi-billion dollar company!

9. xfire99

Posts: 1202; Member since: Mar 14, 2012

Of the money a consumer pays for a iPhone 7, just $8.46 stays in China, according to a CBS News estimate. Japan makes about $68, Taiwan makes $48, and $17 goes to S. Korea. The U.S. makes $68 for supplying parts, and Apple takes in all the remaining sale price. iphone 7 $649 - 8.46 - 68 - 48 - 17 - 68 = 439,54 PROFIT for each iphone SOLD!https://www.cultofmac.com/560489/iphone-profit-us-china-japan-korea-taiwan/ Considering that Apple reportedly makes only $8.46 profit on each iPhone sold. Yeah sure. lol

10. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

I couldn’t care less since I got a job and I can pay the most expensive iphone.

14. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Another type of collusion no less.

30. dmsrfl

Posts: 75; Member since: Sep 21, 2012

The biggest, most corrupted, pathological liar president we've ever had is going to try and manipulate someone who already knows how to run a business.

41. tedkord

Posts: 16974; Member since: Jun 17, 2009

Yeah, a guy with a string of failed businesses behind him is going to lecture the boy day successful business in the world.

32. LiveFaith

Posts: 324; Member since: Jul 04, 2015

Gosh, most Android licensees make more than that per phone I bet. $8 is waaay to tight of a margin. I'm sure the accountants figured this # out.

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