Advantage: iPhones can be hit by a 10% rate

WASHINGTON: Apple Inc., which has lost a fifth of its value since October in the tech market, is expected to face a new setback after US President Donald Trump has suggested that 10% tariffs be applied on mobile phones, like the iPhone, and laptops in China.

The company is already confronted with information that suppliers are reducing their forecasts and that the new iPhone models introduced in September are not selling as well as expected.

Trump's comments to the Wall Street Journal that it could include Apple's flagship product in a new round of tariffs on imports from China is another blow for CEO Tim Cook.

"Maybe, maybe it depends on the rate," said the president, referring to mobile phones and laptops. "I mean, I can earn 10%, and people could handle that very easily."

The Apple stock fell about 1.6% in prolonged trading on Monday as a result of comments.

The United States is expected to increase import duties on goods from China for an amount of about $ 200 billion (RMB 839 billion), up from 10 percent on Jan. 1.

The vast majority of iPhones and other Apple products are made in China and exported around the world. Apple could not be contacted for comment.

Some analysts said the comments could rattle investors. Consumers being "clearly price sensitive" and the average selling price of an iPhone reaching nearly $ 800, "the last thing Cook and investors want is to add additional rates to iPhones and Impact the demand drivers at this crucial stage of the company's growth. " Daniel Ives, an analyst at Wedbush Securities, wrote Monday in a note.

The price of an iPhone ranges between 449 USD and 1,449 USD in the United States, including older models such as the iPhone 7 sold by Apple.

So far, Apple's most lucrative devices, such as the iPhone and iPad, have been excluded from US rates. Earlier this year, Apple had announced that products like Apple Watch and AirPod would be affected before the US imposed tax on these products.

Nevertheless, the company warned in September that other items, such as the Mac mini, the Apple Pencil stylus, as well as some cables and cases, could be damaged.

The company has manufactured a small percentage of older models of iPhone in Brazil and India in recent years, partly to avoid local taxes on imported products.

Trump has repeatedly suggested that Apple should entrust the manufacture of the iPhone to the United States.

Early in his career at Apple, Cook responded to questions about increasing manufacturing in the United States by saying that skills learned in China are more conducive to manufacturing the company's products.

However, in recent months, he has changed his point of view, claiming in an interview this year: "It's not true that the iPhone is not manufactured in the United States".

Some components, such as the smartphone's glass cover, are made in the United States and shipped for assembly in China.

During his almost two-year tenure, Trump has met numerous times with other technology leaders and privately at the White House.