US administration has excused Apple from paying 15% import duty on iPhones, iPads, and MacBooks under a trade deal with China. As per a Bloomberg report, the hike could have added about $150 to the price of iPhones and was due to become effective from December 15. ‘Apple’s earnings per share could have declined by about 4% if the company had incorporated the tariffs without increasing the product prices,’ said Ives.
“Trump delivered an early Christmas present to Apple. If this tariff went through it would have been a major gut punch for semi players/Apple and could have thrown a major wrench into the supply chain and demand for the holiday season,” said Ives in a note to investors after the trade deal news.
Tech giant Apple is already paying duties on Apple Watch, AirPods, HomePod speakers and iMac desktop computers. Apple CEO Tim Cook has reportedly appealed Apple’s case directly to Donald Trump. He said that he was considering whether to exempt the US company from tariffs on imports from China. Moreover, the trade agreement is yet to be officially announced.