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In its quarterly filing with the Securities and Exchange Commission (SEC), Apple this afternoon warned investors about the impact U.S. tariffs on Chinese goods could have on the company.
As Bloomberg points out, the document contains wording suggesting tariffs and other protectionist measures could "adversely affect" Apple's business, resulting in lower gross margin or products that are more expensive for consumers.
International trade disputes could result in tariffs and other protectionist measures that could adversely affect the Company's business. Tariffs could increase the cost of the Company's products and the components and raw materials that go into making them. These increased costs could adversely impact the gross margin that the Company earns on sales of its products.
Tariffs could also make the Company's products more expensive for customers, which could make the Company's products less competitive and reduce consumer demand. Countries may also adopt other protectionist measures that could limit the Company's ability to offer its products and services. Political uncertainty surrounding international trade disputes and protectionist measures could also have a negative effect on consumer confidence and spending, which could adversely affect the Company's business.
It is common for Apple's quarterly 10-Q filings to mention how the company might be impacted by political events, but prior documents have not specifically referenced trade disputes.
During yesterday's earnings call, Apple CEO Tim Cook elaborated on how trade disputes might affect the company. Cook said that of the three tariffs put in place on steel, aluminum, and $50B worth of additional goods from China, none impact Apple's products directly.
A fourth tariff on $200 billion in Chinese goods is up for public comment, and Cook said Apple is evaluating this tariff and will share details at a later date.
The original Apple Watch has been named in this latest proposal, alongside devices that include the Fitbit Charge and some Sonos speakers. Apple has already discontinued its original Apple Watch and newer Apple Watch models are not included.
Cook says that Apple does not think tariffs are the right approach to improving trade agreements and the company is planning to share its views with the Trump administration.
He also said that he was "optimistic" the tariff issue will get sorted out, and that Apple is hoping "calm heads prevail."
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Top Rated Comments
(View all)Simply Pure Apple Greed
It’s called running a business. I can tell you’ve never done it.Almost A TRILLION dollars and they are worried about making 2% less each year in profit while still getting RICHER everyday. While being worth over a trillion dollars.
It’s like complaining about making a penny less per hour.
Simply Pure Apple Greed
Did you do the math on that 2%? We’re not talking about pennies here...Almost A TRILLION dollars and they are worried about making 2% less each year in profit while still getting RICHER everyday. While being worth over a trillion dollars.
It’s like complaining about making a penny less per hour.
Almost A TRILLION dollars and they are worried about making 2% less each year in profit while still getting RICHER everyday. While being worth over a trillion dollars.
It’s like complaining about making a penny less per hour.
I don’t think a warning and complaining means the same.It’s like complaining about making a penny less per hour.
Anyway stock-holding companies are generally required by law to file warnings when they reasonably should expect events that may affect the stock prices.
Care to flesh out your theory a bit more? What exactly are these anti-competitive behaviors and currency manipulation practices that Canada, Brazil, South Korea, Mexico, Turkey, Japan and Taiwan have participated in? Those were the first salvo of Trump's tariffs. Don't forget he also attacked the EU with threats of tariffs too. Oh, and the NAFTA agreement.
Hes right, political thought aside. China is well known globally for doing what they are acused of, there are plenty of journals such as the economist you can look up to understand the situation.At this point, China is an afterthought.
Were all prior administrations so horrible that every single trade deal made was utter junk? Or is this simply a case of Trump and his ego not wanting any major deal around unless he made it himself.
Then again, I'm happy to see he has made a few exceptions ('https://www.news.com.au/finance/economy/world-economy/how-ivanka-trumps-fashion-line-was-exempted-from-her-fathers-war-on-chinese-goods/news-story/fe2eb5ccd567062defe1e8dab68dc5a7') to the tariffs, so maybe there is hope after all. :oops:
And as an example, Canada does have a 240-290% tarrif on american dairy products from milk to butter as an example.
All trump jokes aside, he is focused on american interests first. Despite opinions, i may not agree with each world leader will i hope be biased towards their national interests first. Wheather they are correct or not, i doubt with have any geo economists here that can through down some ideas as to how and why.