Affect prices for wide range of apple products

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Reference no: EM132295897

The technology sector is very vulnerable as tariffs would make imported computer parts more expensive. Apple is highly exposed to a trade war between the US and China. It makes many of its products for the US market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the tariffs.

The White House has accused China of stealing US intellectual property and forcing American companies to share their technology with Chinese companies. The tariffs would pressure China to stop that behavior, the administration has said.

Apple forecasts that the proposed tariffs would affect prices for a “wide range” of Apple products. As a result, Apple’s competiveness could be hurt, leading to higher prices to consumers.

One alternative is that Apple should move production to the United States if it wants to avoid tariffs on Chinese imports.

Congratulations, you were just hired as a consultant to help Apple navigate through this challenge. How would you advise Apple?

Reference no: EM132295897

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