iPhone has not experienced its best moments with sales in the last couple of months. Its sales slump isn’t going away anytime soon either. The tariffs on Apple’s consumer products will only get it messy as the company is trying to reduce its reliance on the sales of a single product. The phone maker is now asking the Trump-led administration to remove the tariffs on Chinese-made watches, iPhone parts and AirPods.
The company, last Thursday sought means to appeal for tariffs exclusions on 11 products including iMac computers, HomePod speakers, components used in repairing iPhones and other consumer products.
The tariffs on Chinese-made components would likely have a negative bang on the phone maker’s revenue. With a saturated market, iPhone sales are already in a major slump as buyers are going for alternatives. In the last quarter of the year, it was revealed that Apple lost its second place to Huawei and it slid to fourth position.
The public has until Nov. 14 to submit comments on the request. These exclusions seek relief from tariffs that took effect on Sept. 1.
In Apple’s submission for US to waive the tariffs, it told the US Trade Representative’s Office that the products were consumer electronic devices and “not strategically important or related to ‘Made in China 2025’ or other Chinese Industrial programs.”
FitBit Inc. also ask the administration for a waive on its fitness trackers because a majority of the wrist wearable devices is globally produced in China, adding that “while Fitbit is aware of facilities currently producing such devices in Taiwan and South Kore, these facilities are fully owned by, or otherwise contracted to Fitbit competitors that use them for their own brand production, rendering them unavailable to Fitbit.”
Alphabet Inc. announced on Friday that it had reached a deal to acquire Fitbit.
With a decline in the sales of iPhone, Apple Watch, AirPods and HomePod brought in 9.4% of Apple’s revenue, a total of $2.4b at the end of September 2019. Sales in this segment were up by 41% as against the previous year.
The compulsory tariffs mean a hike in prices, which might resort to a low patronage, which at the long run will affect revenue for the companies affected. Christie’s Inc. and Sea Eagle Boats have also asked the administration to waive tariffs on items entering from China.