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Console Makers, Apple Publicly Oppose Tariffs

Nintendo Switch.
(Image credit: Tom's Hardware)

More technology giants are coming out against the latest round of tariffs against Chinese goods proposed by President Donald Trump and his administration. Apple has filed a public comment, and there's also a joint comment between Microsoft, Nintendo and Sony Interactive Entertainment.

In the console makers' joint letter, it specifies that 96% of video game consoles imported to the United States in 2018 were from China and suggest that moving supply chains would increase costs, above and beyond inflated prices from tariffs.

"A change in even a single supplier must be vetted carefully to mitigate risks of product quality, unreliability and consumer safety issues," the letter reads. Tariffs would significantly disrupt our companies’ businesses and add significant costs that would depress sales of video game consoles and the games and services that drive the profitability of this market segment."

The letter also argues that a lack of new consoles sold would hurt developers by selling fewer games.

Apple's letter argues that he proposed tariffs would affect all of the company's hardware, including the Mac, iPad, iPhone, AirPods, Apple TV and the parts within them. It's less detailed than the joint letter opposing the tariffs on laptops and tablets from Microsoft, Intel, Dell and HP, but makes one major argument that is similar: Chinese producers don't sell as much in the U.S., so those companies won't suffer in the same way from the tariffs as American electronics manufacturers.

Additionally, Apple highlighted its role as "the largest corporate taxpayer to the U.S. Treasury" and suggested that the impacts could affect its economic contributions to the country.

  • fball922
    Keep beating this drum for the big corporations crying over their profit losses. It falls on deaf ears.
    Reply
  • southernshark
    the whole reason we entered into these trade deals to begin with was because consumers were promised lower prices. To date that hasn't happened. Instead corporate profits went way up and we became a country in which the top 1 percent controls the vast majority of wealth. So tough titties.
    Reply
  • siberiantiger
    Shows Trumps is a tool of his own class - the rich. His tax reform last year proved it. The trade war he is waging doesn't affect him personally. He doesn't shop at Walmart - his supporters do. So tough titties.
    Reply
  • TheSecondPower
    Apple makes what, 40% profit margins? And it makes what contributions to the American economy? Encouraging reckless consumerism where people throw away what should be a perfectly good phone every 2 years? Keep complaining Apple. I'm not interested.

    Microsoft, Sony, and Nintendo all make more than enough money to absorb the loss. It's about time they finally started paying their share in taxes.
    Reply
  • LordConrad
    Corporations can oppose all they want, but it makes no difference. It's not like these tariffs are permanent, they're just a tool used in negotiating.
    Reply
  • cryoburner
    In the console makers' joint letter, it specifies that 96% of video game consoles imported to the United States in 2018 were from China and suggest that moving supply chains would increase costs, above and beyond inflated prices from tariffs.
    So, are they saying the tariffs are not high enough yet? : 3

    Apple's letter argues that he proposed tariffs would affect all of the company's hardware, including the Mac, iPad, iPhone, AirPods, Apple TV and the parts within them.
    Apple's products have such high markup that they could easily absorb the cost while still being profitable. This is the same company trying to sell a simple monitor stand for $1000, rather than include it with their $5000 to $6000 monitor. In terms of profit margins they are pretty much the opposite of what you see from consoles, where the devices are often sold near cost, with most profit made from software sales.

    Additionally, Apple highlighted its role as "the largest corporate taxpayer to the U.S. Treasury" and suggested that the impacts could affect its economic contributions to the country.
    Or, you know, people will just use their money to buy stuff from other companies that will in turn provide those economic contributions.
    Reply