Last week, Donald Trump announced new duties for goods from China. For products worth $ 300 billion will be charged a tax of 10%.
Analyst Min-Chi Kuo is sure that this innovation may not affect the cost of Apple hardware. The Cupertinian “properly prepared” for this innovation and “will absorb most of the additional costs” in the next two years.
Here is Kuo forecast:
1. iPhone . Expansion of production capacity outside of China is a challenge due to the low degree of automation of production. We expect production outside of China to meet US demand in 2020.
2. iPad . It is not difficult to expand production capacity outside of China to meet US demand due to a higher degree of automation of production and a smaller share in the US market.
3. Mac . Although the degree of production automation is higher than that of the iPhone, Mac production capacity outside of China cannot meet the demand of the US market until 2021.
4. Apple Watch . We expect that, starting from 2020, there will be non-Chinese production sites.
5. AirPods . According to our estimates, changing the AirPods’ internal design from SMT to SiP will increase the level of production automation.
In the course of Apple’s financial statements , Tim Cook noted that the company already has a “global” supply chain. And this seems to be true, since the prices of most of the equipment have not changed since the introduction of a tax of 25%. [ 9to5 ]