The Trump administration’s recent tariff plan has sent shockwaves through the tech industry, particularly affecting Apple Inc. The company’s stock fell nearly 10% after news broke that most imports would become more costly, due to a significant increase in tariffs. This is alarming for Apple as its supply chain relies heavily on strategic overseas manufacturing.
Bloomberg’s Mark Gurman suggests several ways Apple can mitigate the impact of these tariffs:
1. Negotiate better prices with component makers and manufacturers, allowing the company to reduce production costs.
2. Reduce profit margins by eating into some of the costs or absorbing them through lower pricing.
3. Make temporary price adjustments until a more stable market is established.
To avoid significant disruptions, Apple has been stockpiling products in the US for months before tariff implementation. This move enables the company to maintain normal prices for its products, at least initially. However, if they choose not to raise prices by September, they risk making the price hike news rather than a hardware upgrade.
Gurman emphasizes that while Apple is cautious about increasing prices, the company aims to minimize the impact of tariffs as much as possible. It’s also worth noting that Tim Cook may attempt to secure an exemption for Apple products during the next presidential term.
As tensions rise in international trade, Apple faces significant challenges in adapting its supply chain and maintaining price competitiveness.
Source: https://9to5mac.com/2025/04/06/apple-tariff-plan-soften-the-blow-bloomberg-report