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Trump Wants Apple to Avoid its Tariffs by Moving Production to US

The presidential tweet was the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business

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Apple
Top apps using Siri Shortcuts to make daily tasks easier: Apple. Pixabay

President Donald Trump concedes that some Apple Inc. products may become more expensive if his administration imposes “massive” additional tariffs on Chinese-made goods, but he says the tech company can fix the problem by moving production to the U.S.

“Start building new plants now. Exciting!” Trump said Saturday in a tweet aimed at the Cupertino, California, company.

This week, Apple said that a proposed additional round of tariffs on $200 billion in Chinese imports would raise prices on some of its products, including the Apple Watch and the Mac mini.

The company is highly exposed to a trade war between the U.S. and China. It makes many of its products for the U.S. market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs.

Apple
Customers look at iPhone 8 and iPhone 8 Plus phones at an Apple Store in San Francisco, California, Sept. 22, 2017. (VOA)

Trump tweeted Saturday that “Apple prices may increase because of the massive Tariffs we may be imposing on China — but there is an easy solution where there would be ZERO tax, and indeed a tax incentive,” if the company made its products in the U.S. instead of China.

Apple didn’t immediately respond to a request for comment. The company has not announced plans to move manufacturing from China to the U.S.

‘Tax on U.S. consumers’

In its letter this week to the Office of the U.S. Trade Representative, Apple said that “because all tariffs ultimately show up as a tax on U.S. consumers, they will increase the cost of Apple products that our customers have come to rely on in their daily lives.”

The company said tariffs would hit “a wide range of Apple products,” including computers, watches, adapters, chargers and tools used in its U.S. manufacturing, repair and data centers. Apple said the tariffs would raise the cost of its U.S. operations and put it at a disadvantage to foreign rivals.

Donald Trump
US President Donald Trump.

The White House has accused China of stealing U.S. intellectual property and forcing American companies to share their technology with Chinese companies. The tariffs would pressure China to stop that behavior, the administration has said. Apple said “it is difficult to see” how tariffs would advance the government’s goal.

The presidential tweet was the latest salvo in a dispute between the Trump administration and companies that fear tariffs will hurt their business.

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The Trump administration has imposed tariffs on $50 billion worth of imports from China, mostly equipment and material used by manufacturers. CEO Tim Cook said in July that those measures had no effect on Apple. The company is concerned, however, about the Trump administration’s proposal to add 25 percent duties on another $200 billion in Chinese goods, including a wider assortment of consumer-related items. (VOA)

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Netflix Not to Integrate its Services with Apple Streaming Platform

Netflix won't be part of Apple streaming platform

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Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

Ahead of the launch of Apple’s streaming service, Netflix CEO Reed Hastings has said his company will not integrate its services with the upcoming platform.

“Apple’s a great company. (But) we want to have people watch our content on our service, and so we have chosen not to integrate into their services,” Hastings said at a press event here on Monday.

The comment precedes Apple’s impending formal announcement to take a deep-dive into the competitive technology-driven world of over-the-top (OTT) entertainment with a set of its own original shows, as well as plans to resell other subscription services like Starz and Showtime as part of its service.

Asked how Netflix can compete with companies like Apple and Amazon that have deep pockets, Hastings said: “With difficulty.”

“You do your best job when you have great competitors. They do a good job, I am going to be envious. They are going to come up with great ideas, I am going to want to borrow those…

“We will make this a great industry if we have great competitors and those companies will be amazing competitors in addition to the ones that we have now,” Hastings told reporters here.

Netflix.

Talking specifically on the competition with Amazon, Hastings said: “For the last 20 years, we have grown. We have got many competitors. We have been competing with Amazon for many years. They are reported to be spending $4-5 billion a year or so on content.

“We spend about twice that. Now, new companies are coming… There’s Disney+, WarnerMedia.

“They (the parent companies) have been in the business for a long time, and we compete with all kinds of entertainment time already. Sometimes we think of YouTube as a great partner, sometimes as a competitor. It’s the same with all of these,” he added.

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“Our success doesn’t determine their success. And what matters is to do amazing content that people love watching and sharing,” Hastings noted.

Apple is gearing up for its mega event on March 25 at the Steve Jobs theatre on its Cupertino, California-based campus, during which the tech giant is expected to announce its much-awaited video streaming service. (IANS)