Bloomberg Daybreak: Asia Edition Can Apple Dodge New US Tariffs?
8 snips
Mar 31, 2025 Catherine Thorbecke, a Bloomberg Opinion Columnist based in Tokyo, discusses Apple's intricate ties with China and the looming impact of US tariffs. James Abate, Chief Investment Officer at Centre Asset Management, sheds light on the economic implications these tariffs may have on global markets. The conversation dives into Apple’s challenges with local competition, the pressing need to diversify supply chains beyond China, and the potential repercussions of these dynamics on the stock market amidst uncertain economic indicators.
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Apple's China Entanglement
- Apple's revenue is significantly tied to the U.S. market, making it vulnerable to new tariffs.
- The company's deep integration with China adds complexity to this challenge.
Chinese Smartphone Competition
- Chinese consumers previously favored domestic brands due to nationalism.
- The Chinese smartphone industry is now more competitive, posing a greater threat to Apple.
Apple's Competitors
- Huawei and Xiaomi are significant competitors for Apple in the Chinese smartphone market.
- These domestic brands often offer AI features that Apple has yet to introduce in China.