JAKARTA The trade rate war between China and the US has had a negative impact on Apple. The reason is, the majority of iPhone supply chains are developed in manufacturing factories located in China.
Although many people are worried about an increase in the price of the iPhone, Apple CEO Tim Cook looks more relaxed when discussing this issue. Cook even admitted that he was not worried about the trade tariff set by US President Donald Trump.
In his latest quarterly earnings report, Cook said that Apple had overcome the trade rate war situation, at least for a while. The company has supplied half of the iPhone from India and the other half from Vietnam.
These two countries were chosen because the tariffs were lower than those in the US setting for China. Even though the company stopped importing supply chains from China to the US, Apple continued production in the country.
Most iPhones and other products will be sent to Apple's market other than the US. This stock storage of products from India and Vietnam does not only apply to iPhones, but also other productivity devices such as Mac, iPad, to Apple Watch.
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"If you look at the US, more than half of iPhone sales in the US are from India," Cook said, quoted from CNBC on Friday, May 2. "If you look at other products, Macs and iPads and AirPods and Watches, almost all home countries are Vietnam."
For now, Apple has avoided setting a very high Chinese import rate. The reason is, the US excludes trade rates for smartphones, computers, and other technologies that are more developed in China than the US.
Although he admitted that he was not worried, the import switch from Vietnam and India showed that Apple had prepared the worst conditions. They are trying to avoid a trade war between China and the US.
At least, Cook's explanation of taking key products from India and Vietnam calms investors a little. This comment was also made to show that Apple managed to overcome this precarious situation.
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