Apple Avoids Tariffs on Most Popular Products After U.S., China Reach Deal

Apple Avoids Tariffs on Most Popular Products After U.S., China Reach Deal

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Interactive Video

Business

University

Hard

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The transcript discusses Apple's financial strategy in light of avoiding 15% tariffs, which would have impacted their margins and EPS. Instead of a boost, the situation is seen as maintaining the status quo. Apple is expected to have stable revenues and a smooth Q2, with strong year-over-year comparisons due to a previous slowdown. The company is not passing the potential $150 cost increase to consumers but is likely managing costs through suppliers. Historically, Apple has raised prices on high-end models to maintain margins, such as with the Apple Watch and AirPods Pro, while keeping consumer prices stable.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways has Apple adjusted its product pricing in response to tariffs?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategies might Apple employ to maintain its financial performance amidst tariff challenges?

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