Apple CEO's Efforts Seemingly Paid Off; iPhone, iPad, Mac Avoid Tariff

The Cupertino-based tech juggernaut will not be affected with hefty tariffs anticipated on iPhone, iPad, and MacBook. US President Donald Trump inked a new trade deal with China, thus preventing this from happening. Apple CEO Tim Cook has been working with the US government these past months, and it seems that his efforts are now paying off.

Earlier, we reported about a report from Bloomberg where Wedbush Analyst Dan Ives predicted a potential $150 increase on the Apple iPhone if the trade deal takes effect on Dec. 15. But, it seems that Christmas came early for tech giants anticipated to be hit by these upcoming tariffs, particularly Apple, as the US president delivered an early present. Had the tariff went through, Apple could have suffered a massive blow and could have thrown a huge wrench into the supply chain as well as in demand for the holiday season, the analyst claims.

Had the Cupertino tech giant absorbed the cost of the impending tariffs, its earnings could have shrunk by around four percent, according to Ives. The increased price of the iPhone caused by the tariffs could have triggered the withering of the demand for the smartphone by around six or eight percent next year. The company, however, is still paying tariffs for some of its products.

This includes tariffs on the Apple AirPods, Apple Watch, HomePod speaker, and iMac components. With a newly reached trade deal, tariffs could possibly be eliminated. Last month, Apple submitted an application for tariff waivers on these products.

The tariffs that Apple avoided today were initially scheduled to take effect in August but were eventually delayed until Dec.15 for the US and China to have more time to be able to reach an agreement. Several reports claimed that Apple CEO Tim Cook has been talking with US President Donald Trump about these tariffs and has reportedly made a good case. With the tariffs, it could put Apple at a disadvantage with rivals like Samsung, which was Cook’s argument, according to reports.

Earlier this year, the Cupertino tech juggernaut sent a letter to the US government, pleading the Trump administration not to proceed with the tariffs, Macrumors claims. The Apple CEO was also seen a few weeks ago giving US President Donald Trump a tour at Apple’s Texas facility. In late October, Cook was quoted saying that he was confident China and the US would resolve the trade war.