Bloomberg Technology US-China Tariff Tensions' Impact on Tech Sector
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Apr 11, 2025 
Mitchell Green, Founder at Lead Edge Capital, and Tony Wong, T. Rowe Price's Science and Tech Portfolio Manager, dive into the turbulent U.S.-China tariff tensions and their ripple effects on the tech sector. Green maintains a bullish stance on China despite concerns over ByteDance's complex ownership, while Wong discusses the challenges tech giants face with manufacturing shifts and profit margins. The conversation also explores how these geopolitical dynamics are reshaping investment strategies and the future landscape of technology.
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Apple's Manufacturing Challenge
- Replicating China's advanced supply chain and skilled labor in the U.S. is nearly impossible for Apple.
- Apple's high margins, a key advantage over competitors, are threatened by tariffs.
Mitigating Tariff Impact on Apple
- Apple could mitigate tariff impacts by raising service prices, which have higher margins.
- Increasing the price of iCloud, for instance, is less noticeable to consumers than a significant phone price hike.
Apple's Vulnerability
- Apple's entrenched market position and strong balance sheet may not be enough in the current trade war.
- The company's manufacturing advantage in China is under threat due to deglobalization fears.