Left Menu
Development News Edition

UPDATE 1-Apple's AirPods will not escape Trump's China tariffs

Reuters | Washington DC | Updated: 13-08-2019 22:37 IST | Created: 13-08-2019 22:33 IST
UPDATE 1-Apple's AirPods will not escape Trump's China tariffs
Representative image Image Credit: ANI

Apple Inc's AirPods, Apple Watch, and HomePod, which have helped the company to offset waning sales of its bestselling iPhone this year, are not included in a temporary reprieve on tariffs by the Trump administration and will face a 10% levy on Sept 1. The administration said on Tuesday some major items, such as laptops and cellphones including Apple's MacBooks and iPhones, will not face tariffs until Dec. 15. The delay affecting some of Apple's biggest-selling products helped send its shares up about 4% in early afternoon trading.

Apple did not immediately respond to a request for comment. Items that face tariffs on Sept. 1 include consumer electronics such as smartwatches, fitness trackers, smart speakers and Bluetooth headphones. These were spared from tariffs last year after the manufacturers sent comment letters to the government. Some accessories have been central to Apple's efforts to diversify revenue beyond its signature iPhone, which pushed the company's market capitalization past $1 trillion in 2018 but has gone into decline this year.

The iPhone contributed less than half of Apple's revenue for the first time in seven years during its latest reported fiscal quarter. The iPhone's decline was offset by a 50% jump in sales of so-called wearables, such as the Apple Watch and AirPods, helping Apple beat Wall Street estimates and boosting its stock. In July, Apple Chief Executive Tim Cook said wearables helped Apple sales in China, where iPhone sales have struggled. During the last quarter, the iPhone's market share in China declined to 5.8% from 6.4%, according to market research firm Canalys, in part because smartphone rival Huawei Technologies Co Ltd gained market share to become the country's top handset seller.

"We actually grew in mainland China," Cook told Reuters in an interview on July 30. "Non-iPhone revenue grew 17%. We grew in every category outside of iPhone." According to lists published by the U.S. Trade Representative's office, a broad category of items taken off a $200 billion tariff list last year will be subject to a 10% tariff as of Sept. 1.

These include popular products from Apple rivals, such as Fitbit smartwatches, smart speakers from Amazon.com Inc's and Alphabet Inc's Google, and Bluetooth connected devices. Fitbit, Amazon, and Google did not immediately return requests for comment.



COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...


Latest News

Pakistan International Airlines terminates services of 52 employees: Report

Cash-strapped Pakistan International Airlines PIA has terminated the services of 52 employees on various charges, including fake degrees, breach of rules, according to a media report. Last month, the national flag carrier grounded more than...

Afghan Presidential envoy for economic development dies from COVID-19

Special envoy to the Afghan president on economic development and poverty reduction, Yosuf Ghazanfar, has died from COVID-19, a presidential adviser told Sputnik on Saturday. According to Shahzain Murtazavi, a strategic relations adviser to...

Shell CEO does not rule out moving headquarters to Britain

Royal Dutch Shell is not ruling out moving its headquarters from the Netherlands to Britain, the oil companys chief executive Ben van Beurden said in a Dutch newspaper interview published on Saturday. Anglo-Dutch consumer products giant Uni...

Trump attacks 'left-wing cultural revolution' in Mount Rushmore address

P resident Donald Trump on Friday accused angry mobs of trying to erase history with efforts to remove or rethink monuments to U.S. historical figures and used a speech at Mount Rushmore to paint himself as a bulwark against left-wing extre...

Give Feedback