Economist Podcasts Pulp friction: the trade war bites Apple
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Apr 9, 2025 
This conversation features Henry Tricks, US technology editor at The Economist, and Owen Winter, data journalist at The Economist. They dive into how Apple's navigating the turbulent waters of the US-China trade war and the impact of rising tariffs on its profitability and strategy. The duo also tackles class dynamics in Britain, examining if they're softening, and discusses how young Republican influencers are reshaping conservatism through platforms like TikTok, blending political identity with lifestyle.
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Apple's Vulnerability
- Apple's overreliance on China for hardware production makes it vulnerable in the trade war.
- Diversification attempts into India and Vietnam haven't fully panned out due to tariffs.
Consumer Reactions and Apple's Options
- Consumers rushed to Apple stores, fearing tariff-driven price hikes.
- It remains uncertain whether Apple will absorb the costs, raise prices, or pressure suppliers/investors.
Challenges of US Production
- Shifting production to America is challenging due to high labor costs and potential lack of skilled workers.
- Estimates suggest US-made iPhones could be exorbitantly priced, impacting affordability.