FT told about the risk for Apple devices because of the Trump trade war
Apple's fastest growing sector, which includes smart watches Apple Watch, HomePod speakers and AirPods headphones, is in danger of suffering from the latest offer of US President Donald Trump to introduce 10-percent duties on Chinese goods worth $ 200 billion.
The company's main products, iPhone and Mac computers, are so far removed from the action of the proposed tariffs. "Apple may be forced to raise prices in the US to compensate for increased duties, or take a hit on profitability indicators," the newspaper said. Under the new fees, the "smart" columns of Apple's competitors can also be found, these are the devices of the companies Amazon, Google and Sonos.
"Raising the degree of rhetoric between the US and China" is one of the "biggest risks" for the value of Apple's shares throughout the time before the presentation of the new iPhone, FT refers to a note by Morgan Stanley analysts.
Trump threatened to introduce 10-percent duties on Chinese goods worth $ 200 billion in June. Prior to this, the US introduced 25-percent tariffs on Chinese goods for $ 50 billion, Beijing responded to this with mirror measures. Trump explained that he would introduce new fees, "if China refuses to change its actions, and if it continues to insist on promoting new duties, which it recently announced."