Amid recent U.S. tariffs on imports, Apple faces critical decisions regarding pricing. The 10% tariff on Chinese imports could either lead Apple to absorb costs or raise prices for products like the iPhone, potentially affecting consumer behavior. Analyst Wamsi Mohan suggests that Apple could lose 26 cents in earnings per share if it does not raise prices. However, a 3% increase could lessen the loss to 21 cents, while a 9% hike might be essential to offset losses from tariffs and potential declines in sales.
With tariffs imposed on imports, Apple faces pressure to either absorb costs or raise product prices, impacting consumer decisions and profit margins.
Analysts predict that if Apple raises prices by 3%, it will mitigate losses, but a 9% increase is needed to fully counteract tariff impacts.
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