New York, KOMPAS.com – If the government of President Donald Trump does indeed implement the threat of tariffs, Apple will suffer significant losses.
As reported CNNOn Saturday (March 8, 2019), applying import tariffs would reduce Apple's sales by $ 6 million to $ 8 million next year.
Wedbush Securitues technology analyst Dan Ives says applying the $ 300 million Trump additional tariff will reduce Apple's revenue by 4 percent by 2020.
Earlier, President Donald Trump had threatened to impose a tariff of 10 percent on other $ 300 million non-tariffed Chinese products.
Read also: Trump will apply additional import prices for Chinese products
These products include laptops, smartphones and other technology products. According to Ives, with the adoption of new tariffs, the US tech industry will be at risk.
"Apple is obviously caught in a cross between DC and Beijing," Ives said.
Wall Street continues to worry about a return to the outbreak of the Natar trade war between China and the United States. Apple stock price also dropped to 2 percent during trading on Thursday (1/8/2019) and again dropped 1 percent during trading on Friday (02/02/2019).
Although Ives believes that Apple will be able to mitigate the increase in production costs by moving the supply chain, it will take a long time.
Read also: Trump rejects Apple's request for exemption from Chinese pricing collected by Mac Pro
According to him, Apple could move 5 to 7 percent of iPhone production from China to India and Vietnam in the next two years if the tariff war continues.
However, Apple can't just leave China. Thus, like it or not, iPhone users have to pay more or delay the purchase of iPhone products.
Another bittersweet option is for iPhone users to switch to other mobile phone choices.
The timing of this new tariff is quite difficult for Apple. Because Apple has just reported better-than-market financial results.