How Apple Could Navigate Trump's Tariffs, According to Gurman

Apple is likely to take a multi-pronged approach to manage the impact of impending tariffs on its products, according to Bloomberg's Mark Gurman. The company faces looming challenges, as new tariffs will affect not just China-based production but also the very countries Apple has diversified into.

Apple iPhone 16 family lineup
The upcoming tariffs range from 20% to 46% across Apple's global manufacturing hubs. India, where Apple increasingly builds iPhones and AirPods, will face a 26% tariff. Vietnam, which produces AirPods, iPads, Apple Watches and Macs, will be hit with a 46% levy. Malaysia, Thailand, Indonesia, and even Ireland will face tariffs between a 20% and 37%.

Gurman believes Apple will pursue a combined strategy to mitigate these impacts. First, he says the company will likely pressure its component suppliers and manufacturing partners to reduce prices. Second, Apple may absorb a portion of the increased costs, eating into its typical hardware profit margin of around 45%.

Third, and perhaps most concerning for consumers, Apple could consider iPhone price adjustments. The company has already implemented price increases in other markets in response to tax policies, currency fluctuations, and inflation. "I expect that Apple will seriously consider iPhone price adjustments," writes Gurman. "It helps that consumers have probably heard about the outside factors here and won’t see it as a cash grab."

Finally, Apple will likely accelerate its supply chain diversification efforts. While the company won't be able to rapidly shift production to the United States, it may prioritize shipments from countries with lower tariff rates, such as routing more iPhones from India rather than China.

Apple has been stockpiling inventory in the U.S. for months in anticipation of the tariffs, which could delay price increases until the iPhone 17 launch in September. Units already in the U.S. are exempt from the tariffs, which officially take effect on April 9.

Despite Apple CEO Tim Cook's efforts to cultivate a relationship with Trump, including attending his inauguration and pledging $500 billion in US investments over the next four years, the company has so far not been successful in securing exemptions.

For consumers wondering whether they will have to pay more for an iPhone this fall, Gurman suggests Apple might become more aggressive with trade-in specials and installment plans to offset potential price increases, or possibly revive its previously considered hardware subscription service.

Apple has not yet made any comment on the tariffs or its plans going forward, but the company is surely working behind the scenes to calculate their impact.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

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Top Rated Comments

joiwomcow Avatar
4 hours ago at 04:04 am
"Third, and perhaps most concerning for consumers, Apple could consider iPhone price adjustments."

It's not an adjustment. It's an increase. Apple is increasing its prices, due to a tax on imports, which the American people voted for.
Score: 30 Votes (Like | Disagree)
Denzo Avatar
4 hours ago at 04:11 am
Realistically, there is a ceiling that people will pay for an iphone.. and I honestly believe we are at it. I had every iPhone since the 3GS, stopped at the 13PM.. becasue replacing an almost identical phone for $2000AUD+ stopped making sense. I did buy my wife the latest one for our anniversary.. but man 2500AUD for an iphone.. wouldnt do that again in a hurry.. if they think they will keep growing at what? $3k?

They need to relax. Its a phone and unlike when I bought all the earlier model iphones, theres a lot of solid competition.. but maybe its just my opinion.
Score: 14 Votes (Like | Disagree)
Bungaree.Chubbins Avatar
4 hours ago at 04:08 am
I’m just hoping they don’t inflate prices around the rest of the world to subsidise costs inside the U.S. They’re already expensive enough out here!
Score: 13 Votes (Like | Disagree)
DHagan4755 Avatar
4 hours ago at 03:56 am
And then again, by the end of the month, the tariffs situation could be resolved. We just don't know.
Score: 11 Votes (Like | Disagree)
foliovision Avatar
4 hours ago at 04:15 am
Come on guys, Apple will either onshore assembly with ridiculously low nominal prices for parts import (arbitrage) or will pick a country for special privileges together with State Department and CIA and move all its assembly there. Say Taiwan – puts a big money pot in Taiwan's hands to buy US arms.

There's no way that any US administration sinks Apple's ship. It would be political suicide. Of course, this would change were Apple to take sides against an administration. Then they could be targeted as an example to any company opposing imperial policy. Hence Tim Cook clubbing around with Trump. At the end of the day, Cook follows power wherever it leads him.

Jobs might have taken a stand, either for or against or painstakingly neutral. Jobs believed that technology should be private and politically neutral. He deeply understood the danger to both the tech industry and the world if our creative and work tools became spyware. There isn't anyone significant in tech with as much intellectual backbone and philosophical depth as Jobs now, except maybe Musk who is kind of a Joker to Jobs's Batman.

And let's not even get started on dark agents of oppression like Peter Thiel or even Sam Altman.
Score: 10 Votes (Like | Disagree)
TechWhisperer Avatar
4 hours ago at 04:20 am
Neither the government nor Apple genuinely cares about you. Stick with the tech you’ve got, your wallet will thank you for it.
Score: 10 Votes (Like | Disagree)