How Apple Could Navigate Trump's Tariffs, According to Gurman

How Apple Could Navigate Trump's Tariffs, According to Gurman

Apple is likely to take a multi-pronged approach to manage the impact of impending tariffs on its products, according to Bloomberg 's Mark Gurman . The company faces looming challenges, as new tariffs will affect not just China-based production but also the very countries Apple has diversified into. The upcoming tariffs range from 20% to 46% across Apple's global manufacturing hubs. India, where Apple increasingly builds iPhones and AirPods, will face a 26% tariff. Vietnam, which produces AirPods, iPads, Apple Watches and Macs, will be hit with a 46% levy. Malaysia, Thailand, Indonesia, and even Ireland will face tariffs between a 20% and 37%. Gurman believes Apple will pursue a combined strategy to mitigate these impacts. First, he says the company will likely pressure its component suppliers and manufacturing partners to reduce prices. Second, Apple may absorb a portion of the increased costs, eating into its typical hardware profit margin of around 45%. Third, and perhaps most co…