The article will discuss tariffs on Apple AirPods and apple’s performance in the wireless earbuds market. Airpods were to face a 15 percent tariff in the US beginning from last year. Mainly, this marked the first time Apple saw a direct impact of the trade war between the US and China. Apple is ready to absorb the impact of the import levy without raising the prices of its products. The trade war is primarily set to impact Apple’s gross margins and profits over the 2020 financial year. However, the tariff will have a small impact on Apple’s finances. The essay will help in understanding the tariffs on Apple AirPods and the wireless earbuds market.
WIRELESS EARBUDS MARKET AND APPLE AIRPODS
Apple plans to grow its share of the true wireless earbuds market by a third in 2020. However, this is despite having lost its dominant position in the space to more affordable alternative earbuds. Apple accounted for nearly half of all sales of truly wireless earbuds in 2019. However, the lead got eroded by the arrival of Chinese rival brands. It led to its market share shrinking to over a third of the market. Xiaomi remains in second place, and Samsung sits in third in the earbuds market. The essay will discuss recent tariffs on Apple AirPods and competitors in the wireless earbuds market.
US TRADE WAR WITH CHINA
The US trade war with China has affected Apple’s grasp of the wireless earbuds market. Moreover, it led to apple closing down at nearly 6 percent. China raised tariffs on some US goods after President Trump threatened to raise more tariffs on Chinese imports. Mainly, Apple got hit harder than most in the stock market. Apple is vulnerable to the trade war between the US and China because of its iPhones, primarily in China. Many new investors have to pay attention to details since Apple’s products may get caught in the crossfire. The essay will highlight the increased tariffs on Apple AirPods and the competition in the wireless earbuds market.
Additional attachments
>> Download
