Apple Inc. CEO Steve cook has said that China has not targeted the company in the ongoing trade wars between the Washington and Beijing, and he thinks that it will not get to that.
Cook doesn’t anticipate tariffs on Apple products
In an interview with CBS News on Tuesday, the CEO said that there was not target from the Chinese on Apple products and there was no possibility that they will. Cook also spoke on other issues, including fake news, immigration, and the time consumers spend using their iPhones.
The trade wars between the world’s leading economies escalated over the weekend with China increasing its tariffs on $60 billion worth of US goods which included imposing high levies of up to 25% on over 5,000 US products. The move by Beijing comes weeks after Trump moved to increase duties on Chinese imports for up to $200 billion of products.
An increase in tariff by 25% on an iPhone will potentially increase the prices of the smartphone by over a hundred US dollar, which will make the phones more expensive in Yuan terms in China. The CEO said that such a scenario is likely to hurt Apple’s sales in China but retaliated that he doesn’t foresee it happening.
Tariffs could hurt China more
Mr. Cook told CBS News that people think that the iPhone is made and assembled in China, but the truth is that the iPhone is made everywhere. He added that a tariff on the iPhone is likely to hurt all countries, but the most affected one will be China.
Early this year, Apple slashed prices for most of its main products in China, including Macs, iPhones, iPads as well as AirPods. The company cited revenue shortfall in China, which was a result of declining iPhone sales and demand in China.
On fake news, the CEO told CBS that the impact of fake news usually worries him, but for the part of Apple they are not an amplifier of fake news or the pitting of groups versus each other. He added that Apple News relies on people to curate information instead of machines.
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