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Which would reduce the profit margin and then PE ratio and then market capitalisation. Who would want that?
by wg0 2y ago
Which would reduce the profit margin and then PE ratio and then market capitalisation.
Who would want that?
- alephnerd 2y agoThe alternative is severely reduced purchases, which are an even more severe hit to all the metrics mentioned. Margins are important, but so is rate of sales. Hence the statements in the original Reuters article.
- JumpCrisscross 2y ago> alternative is severely reduced purchases Doubt it. Keep a cheap upgrade option with an older and reduced BOM and then use the tariffs as an excuse to boost the top-of-the-line offering to $3k.
- alephnerd 2y agoI agree with that, and that is most likely what will happen. But my point is I would be very shocked if base model iPhones, lower specced Pro models, and the 16e would see a price increase beyond 15%. At the higher tier (Pro Max, and maybe even Pro) absolutely, as those were already out of the price range of the average consumer.
- JumpCrisscross 2y ago> would be very shocked if base model iPhones, lower specced Pro models, and the 16e would see a price increase beyond 15% I’ll also be shocked if they take much margin hit there. All of the iPhone’s competitors are also getting tariffed, after all. And the tariffs don’t bridge the labour-cost difference, so it’s not like launching domestic production would make sense even if you could trust that these policies will stick.
- petre 2y agoThat's why Buffet sold his Apple stock: he saw this coming. Now he can buy it at a discount.
- wg0 2y agoApple consumers aren't price sensitive. If they were, they wouldn't buy Apple.