Tariff Showdown: How Apple Plans to Weather the Storm Without Skyrocketing Prices

An analyst from GF Securities, Jeff Pu, has outlined potential responses by Apple to new tariffs imposed on global imports by the US. According to Pu, Apple is likely to absorb most of the additional costs due to thin supply chain margins and the current challenging market for the iPhone. Two main strategies are proposed: a small (3-6%) price increase globally or a more significant (10-19%) increase in the US market. However, significant price hikes are unlikely as they could lead to consumer backlash and provide opportunities for competitors. The article suggests that Apple's financial cushion will help it manage these costs without extreme price increases.