At the end of the day it’s all of it. Some of it is built into their existing model, some of it is constant etc but they include it all in the calculations to come up with the prices. New costs like these tariffs get added to the overall margin calculation and a new price is set.
Still there is another side of it that also interesting. These companies has done their calculations so the cost of the product is perfect. Increasing that price means less people will buy the product.
Once again. Companies do NOT pay tariffs. They pass on those costs of those tariffs to their customers. YOU are gonna pay that extra 25% not Apple.
that’s fine. iphones are so cheap, people can handle even 50% tariffs. apple is worth every penny /s.
going to buy a cmf phone 2 now…
how long is it going to take, before you realize its too late? if they didn’t realize by now, they aren’t going to
Trump will never ever admit he’s wrong, but I’m curious how the voters will react when everything costs 50% more all of a sudden.
They’ll probably blame Biden somehow, but I’m curious still
He’s already called all the stock market turmoil “Biden’s market”, hilariously.
It’s extremely misleading to say “companies do not pay tariffs” and then immediately explain that companies do indeed pay tariffs.
Unless the companies eat the tariffs. But greedy companies will pass them on
Is it only tariff costs that are passed on to employees and customers or are all corporate tax costs passed on to employees and customers?
At the end of the day it’s all of it. Some of it is built into their existing model, some of it is constant etc but they include it all in the calculations to come up with the prices. New costs like these tariffs get added to the overall margin calculation and a new price is set.
Still there is another side of it that also interesting. These companies has done their calculations so the cost of the product is perfect. Increasing that price means less people will buy the product.
Unless your competitors are also facing the same forced price increase.