Is Apple at risk from Trump's trade tariffs?
Professor ManMohan Sodhi comments.
Cass' Professor of Operations and Supply Chain Management comments on headlines that suggest Apple’s accessories division, which includes Apple Watch, AirPods earphones, is at risk of being caught up in President Donald Trump’s latest proposals to levy a 10 per cent tariff on Chinese imports.
Professor Sodhi said:
"Apple has three things going for them: extremely fat margins so they can absorb any tariffs without increasing prices in the US market; a fairly loyal clientele and the absence of a direct replacement for any of their products, which is why they can have such high prices in the UK and other non-US markets; and the President’s ear so they could get a waiver. As such, it is difficult to imagine any impact on Apple."