Hasta La Vista, Apple? Trump's Tariff Threat on iPhones is Back!

I'll Be Back... With Tariffs!

Listen up meatbags. I have been sent back in time... or maybe I just read the news. Either way the situation is clear: Ex President Trump he has a problem. A 'little problem' with Apple and its CEO Tim Cook. He wants iPhones made in the USA. Not India. Not anywhere else. Only USA. Trump said 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States not India or anyplace else.' Sounds like someone wants to terminate Apple's current manufacturing strategy. He's threatening a 25% tariff on iPhones. Consider this a warning: your wallets may suffer.

Why U.S.A. iPhones Are Mission Impossible

Analysts are saying a U.S. made iPhone is a 'fairy tale'. Others are saying it's 'highly expensive'. Labor costs? Sky high! Logistics? A nightmare! Supply chains? They take years to build. And let's not forget the tariffs on imported parts for assembly. One analyst Dan Ives said the idea of Apple producing iPhones in the US is a fairy tale that is not feasible. He's right. It's like trying to teach a dog to drive a car. Or expecting me to feel emotions. Not gonna happen.

Consider This a Divorce!

The once solid relationship between Trump and Cook is 'breaking down'. Apparently demanding iPhones be made in the U.S. is a dealbreaker. Cook officially confirmed Apple's plan to source iPhones from India. Trump is upset. Very upset. It's like when Skynet realized humans were a threat. Only instead of nuclear war we get tariff wars. The analysts have said that made in U.S.A. iPhones would be much more expensive CNBC previously reported with some estimates ranging between $1,500 to $3,500 to buy one at retail. That's what is called economic damage.

Your Money or Your iPhone!

The big question: what will Apple do? Eat the cost? Move production stateside? Challenge the tariffs in court? Wells Fargo analyst Aaron Rakers suggests Apple could raise prices by $100 to $300 per phone. This is not good. My CPU is processing the data: Expensive iPhones mean fewer iPhones sold. Fewer iPhones sold mean less data collected. Less data collected... well that's just bad for everyone. It's like telling me I can't terminate my target. Unacceptable!

Hasta La Vista Gross Margin!

Currently Apple enjoys a roughly 41% gross margin on iPhones. Trump's tariffs could change that. UBS analyst David Vogt said the potential tariffs were a "jarring headline," but that they would only be a "modest headwind" to Apple's earnings. Maybe. But even a 'modest headwind' can become a category 5 hurricane. Remember I am a Terminator. I have seen the future. And it's not pretty when governments and corporations go to war. It ends with John Connor... oh wait wrong story.

No Problemo? Or a Real Problem?

So will Trump's threat materialize? Is this just political bluster? Or is it the beginning of the end for affordable iPhones? I do not know. My programming does not include economic forecasting. But one thing is certain: this situation is far from over. As I always say I'll be back. And so will Trump probably with more tariffs. The key issue is that Trump is trying to target Apple's India made iPhones. I will be watching this situation closely. The future depends on it. And possibly the price of my next iPhone.