FILE PHOTO: The logo of Apple is seen in a shop in zurich, Zurich, Switzerland, on January 3, 2019. REUTERS/Arnd Wiegmann
(Reuters) – Apple Inc’s (AAPL.D) it would be a hit to its annual revenues from the US President, when He recently proposed a 10% tariff on Chinese imports, starting on 1 September, analysts at Bank of America Merrill Lynch said on Friday.
Shares in the iPhone maker, which reported a surprise improvement in its fortunes in China earlier this week, it was less than 2% in morning trading, adding to a similar loss from a day earlier after He tore up a trade truce with China, which had lasted just over a month’s time.
“Our back of the envelope math suggests that the impact of the new rates will be about $0.50-$0.75 (annual per share) for the hit to earnings by approximately $0.30-$0.50 from the end,” the brokerage said.
He has used tariffs as a tool when he is trying to negotiate better terms for the United States, saying that the bad deals cost millions of AMERICAN jobs.
In the Uk also, pay attention to the possibility that Apple could increase the price of the iphone by about 10%, by reducing the demand for phones with 20%, or about 10 million units.
Reporting Munsif Vengattil in Bengaluru; Editing by Arun Koyyur