Apple to Maintain Pricing of Products Despite New US-China Trade Tariffs
Apple to Maintain Pricing of Products Despite New US-China Trade Tariffs
Apple's dominant market share in the United States, along with its advanced production automation will aid the company in staying afloat.

After the long-going worry on the pricing of Apple products, well-known analyst Ming-Chi Kuo seems to have put down all the worries to rest. Kuo, in his latest investor note, has clarified on Apple’s future strategies. Talking about Apple’s supply chain logistics and the consequences of the latest tariffs imposed on China by the US administration, Kuo confirmed that Apple is not going to increase the prices of any of its products any time soon. He also added that the tech company is all ready to deal with extra expenses and tariffs.

The analyst talked about the company’s ongoing plans for increasing its non-Chinese production. To avoid the extra tariffs, Apple will be working towards boosting its non-Chinese production, thus dealing with the demand enforced by the US market.

The new step has come in action after US President Donald Trump and the United States administration proposed a 10 percent tariff on Chinese imports from September 1. Analysts from the Bank of America Merrill Lynch already spoke about the increased tariffs possible impact on Apple products. Days after the increased tariffs hit Chinese markets, Apple shares in China sank 2.5 percent in the morning trade on Monday, August 5. Surprisingly, Apple reported an improvement in its fortunes in China last week. Globally, iPhone sales fell 12 percent to $25.99 billion in the latest reported quarter.

According to Kuo, Apple's dominant market share in the United States, along with its advanced production automation will aid the company in staying afloat. It is predicted that the iPhone demand in the US will be fully met by its production facilities in India and Vietnam as early as next year.

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